Crypto Outlook 25 + Nov. market update and perf attrib of our ETPs

Prior to my regular monthly crypto update, I am pleased to share few things today, the day that Bitcoin broke 100k USD!

Hashdex Nasdaq Crypto Index Europe ETP (“HDX1”) has won the Digital Assets ETP of the Year award at the ETF Stream Awards 2024! This prestigious recognition places HASH among the best, celebrating its excellence in the European ETF ecosystem.

In addition, we have published our perspectives and outlook for next year: Hashdex 2025 Crypto Investment Oulook – Into the Mainstream.

In this report you will find valuable insights from our team:

• Crypto´s shot: The plan is to fan this spark into a flame – A note from CEO Marcelo Sampaio

• 2025, the Year of Generalisation: Institutional adoption, regulatory advancements, and a surge in opportunities – Samir Kerbage, CIO

• An Ocean of Opportunities: Growing integration of crypto into traditional finance and the digital economy – Pedro Lapenta, Head of Research

• Bitcoin Takes the Leap: On its way to being recognized as a store of value, with record inflows into ETFs – Lucas Santana, Research Analyst

• The Next ”Killer App” and Blockchain Innovations: Stablecoins, scalability, and decentralized applications – Yuri Alter, Research Analyst

• Macro and Institutional Context: Bitcoin halving, demand shock, and a pro-crypto environment in the United States – João Marco Cunha, Head of Portfolio Management

Happy to organise a call with our Research to discuss further about it and share our views.

Following with our November crypto market update and performance attributions of our Crypto Index ETPs.

One thing to note that we have constantly said: Crypto is more than Bitcoin, thus over the long run we are conviced Index investing is the way to go… In the current environment this crypto index investment case is stronger than ever!

See our Hashdex Nasdaq Crypto Index ETP (HDX1) and Hashdex Crypto Momentum Factor ETP (HDXM) vs iShares Bitcoin ETF since the US elections 505/11 to 04/12, source Bloomberg):

Hashdex Crypto Index ETPs: performances (USD) as of end of November 24

• Beta Index ETP – Nasdaq Crypto Index ETP (HASH or HDX1) (largest Crypto Index ETP in Europe): November: +45.7%, YTD +111.62%, 12M +146.42%.

• Smart-Beta Index ETP – Crypto Momentum Index ETP (HAMO or HDXM): November: +62.6%, YTD 70.4%, 12M +127.3%.

Market Update – November 24

November marked a historic month for crypto assets. The Nasdaq Crypto Index (NCI) closed the month with an unprecedented gain of 45.7%, driven by Bitcoin’s rally to new all-time highs and an even stronger performance from smaller-cap crypto assets. Bitcoin surged 38%, surpassing $75,000 the day after Trump’s victory and nearing $100,000 by the end of the month. This incredible performance signals the market’s optimism toward the election of a pro-crypto government in the U.S.

However, Bitcoin’s performance was only part of the story. Altcoins significantly outperformed, as Trump’s victory was interpreted as a signal for regulatory relief and institutional expansion into crypto. XRP and Cardano led the charge, skyrocketing 274% and 219%, respectively. Other notable performers included Solana (+125%), Ethereum (+65%), and Algorand (+210%), all benefiting from renewed optimism and increased adoption across their ecosystems. These results highlight the widespread rally across different segments of the crypto market, underscoring the depth and breadth of November’s momentum.

Nasdaq Crypto Index (NCI) relative to other asset class in November 24

Source: Hashdex, as of 30/11/24, HAMO for Crypto Momentum Index, the underlying of HAMO ETP.

In comparison to traditional markets, the NCI’s 45.7% gain dwarfed the returns of the S&P 500 (+4.2%) and Nasdaq 100 (+6.5%), both of which saw solid but comparatively modest growth following the U.S. election. This month’s results highlight the NCI’s capacity to deliver outsized returns during periods of favorable macroeconomic and political conditions.

Performance attribution:

Nasdaq Crypto Index (NCI)
The NCI’s exceptional performance in November was broad-based, with every constituent delivering positive returns. While Bitcoin (+38%) anchored the index, smaller assets delivered extraordinary gains. XRP (+274%) and Cardano (+219%) were the standouts, benefiting from the perception of regulatory relief under a pro-crypto administration. Other notable contributors included Solana (+125%), Algorand (+210%), and Ethereum (+65%), reflecting the strength of the altcoin market. They were the real driver of the index’s outperformance.

It is important to highlight the diversification role. In November, the NCI outperformed Bitcoin due to its basket containing other crypto assets that delivered better performance. As such, the index is designed to capture the overall development of the market rather than focusing solely on a single asset.

Source: Hashdex, as of 30/11/24.

Crypto Momentum Factor Index

The Crypto Momentum Factor Index gained an impressive 62.5%, driven by its heavy weighting toward high-performing altcoins. Cardano, Hedera, and Algorand were the top performers, with returns exceeding 200%. TRON (TRX), the largest-weighted asset in the index, rose by 21.9%, providing more modest but steady gains.

Source: Hashdex, as of 30/11/24.

Correlation (3m) to traditional asset classes

Source: Hashdex, as of 30/11/24. NCI for Nasdaq Crypto Index.

Hashdex Nasdaq Crypto Index ETP

Largest Crypto Index ETP in Europe, AUM ~$630m

ISIN: CH1184151731 / Tickers: HASH (SIX and Euronext) or HDX1 (Xetra) – tradable in USD, EUR, CHF and GBP

Hashdex Crypto Momentum Factor ETP

ISIN: CH1218734544 / Tickers: HAMO (SIX and Euronext) or HDXM (Xetra) – tradable in USD, EUR, CHF and GBP