Coinbase Cloud is the initial provider, while common shareholders receive 60% of net staking income only after a fiscal-year threshold tied to 0.25% of common-share NAV is exceeded.
Hashdex plans to begin staking a portion of the crypto held in its Nasdaq CME Crypto Index ETF, NCIQ, under a structure that gives the sponsor the first share of annual net staking income before publicly traded shareholders participate. A July 23 Form 8-K named Coinbase Cloud as the initial provider and said staking was expected to begin promptly, subject to operational readiness. Under a July 23 prospectus supplement, the staking provider first keeps its share of gross rewards. Hashdex then receives all remaining net staking income up to a threshold equal to 0.25% of common-share net asset value through one Sponsor Share, an unlisted share class held only by Hashdex. Income above that level is split 40% to Hashdex and 60% to the trust for NCIQ common shareholders. The threshold is measured over each fiscal year and prorated for a partial year. If annual net staking income does not rise above that level, common shareholders receive none of it. The Sponsor Share return is separate from NCIQ’s 0.25% annual management fee. Hashdex’s product page lists provider deductions of 8% on gross ether staking rewards, an 8% validator commission for Solana, and a 5% validator commission for Cardano. As of July 26, Ethereum made up 11.75% of NCIQ holdings, Solana 3.17%, and Cardano 0.49%, or 15.41% combined, though that does not mean those amounts will be staked. Hashdex lists a target staking range of 10% to 20% of total fund NAV. The investor impact will depend on which assets are staked, how much of the portfolio is committed, network reward rates, and provider deductions. Staking can also introduce unbonding delays, validator failures, or slashing, which may affect rewards and make redemptions or rebalancing harder, potentially increasing the gap between NCIQ’s NAV and its underlying price index.