The Hashdex DeFi Index ETF (DEFI11) is a Brazilian exchange-traded fund designed to track the performance of the CF DeFi Composite Index – Modified Market Cap Weight – BRT, a benchmark developed by CF Benchmarks to measure native tokens of blockchain-based decentralized applications and protocols within the decentralized finance (DeFi) ecosystem.

Managed by Hashdex Gestora de Recursos Ltda. and administered by Banco Genial S.A., the ETF trades under the ticker DEFI11 on the B3. Classified as a digital asset ETF, DEFI11 follows a passive management strategy and provides diversified exposure to decentralized finance through a regulated, exchange-traded investment vehicle.

To achieve its investment objective, the fund invests at least 95% of its net assets in shares of the Hashdex DeFi Index ETF, its target ETF, which in turn invests in financial assets issued or traded internationally and associated with the DeFi ecosystem, or in long futures positions designed to reflect the performance of the benchmark.

Composition / Exposure Profile

DEFI11 provides exposure primarily to:

• Native tokens of decentralized finance (DeFi) protocols.

• Blockchain-based decentralized applications and protocols.

• Decentralized exchanges (DEXs).

• Decentralized lending, borrowing, and other financial protocols.

• The global digital asset and blockchain infrastructure markets.

The CF DeFi Index is designed to represent different segments of the decentralized finance ecosystem. Digital assets must satisfy eligibility requirements established by CF Benchmarks, including criteria related to trading and the availability of qualified markets.

The benchmark uses a modified market capitalization weighting methodology and is rebalanced quarterly. Its composition can therefore evolve over time as individual protocols gain or lose relevance within the broader DeFi ecosystem.

Unlike single-asset cryptocurrency ETFs, DEFI11 provides exposure across multiple decentralized finance protocols. Its performance is consequently influenced by adoption of decentralized applications, blockchain network activity, cryptocurrency market liquidity, technological innovation, regulatory developments, and broader investor sentiment toward digital assets.

Structure and Costs

DEFI11 shares trade on the secondary market on the B3 during regular trading hours. Share creation and redemption are conducted according to the procedures established by the ETF structure.

The fund charges a maximum total expense ratio of 1.30% per year, reflecting the costs applicable to its investment structure.

DEFI11 does not make recurring income distributions. Returns generated by the underlying investments are incorporated into the fund's net asset value. The ETF has an indefinite term.

History and Evolution of the ETF

The Hashdex DeFi Index ETF was launched in 2022 to provide investors with exchange-traded access to the decentralized finance ecosystem through the Brazilian stock market.

The fund expanded Brazil's range of cryptocurrency ETFs by introducing a thematic strategy specifically focused on DeFi applications and protocols rather than concentrating exposure on individual digital assets such as Bitcoin or Ethereum.

Since its launch, DEFI11's portfolio has evolved alongside the periodic rebalancing of the CF DeFi Index and the broader development of decentralized finance. Its performance has reflected different cryptocurrency market cycles and has been influenced by DeFi adoption, global liquidity conditions, technological innovation, regulatory developments, and broader macroeconomic conditions affecting digital assets.

Additional Information

Hashdex DeFi Index ETF (Brazil) is an exchange-traded fund (ETF), with assets under management totaling $68.07 million.

Over the past 12 months, Hashdex DeFi Index ETF recorded a return of -48.83%, with its price trading between $10.30 and $35.18 during the same period.

The ETF is traded under the ticker DEFI11.