BAGZ
Industry:
Capital Markets

DESCRIPTION

The Cryptex Digital Market Cap ETF is a passive exchange-traded fund that provides investors with diversified cryptocurrency market exposure through traditional brokerage accounts. The fund holds underlying crypto assets directly rather than derivatives, tracking the rules-based Cryptex Digital Market Cap Index across multiple thematic categories, including major Layer 1 networks, infrastructure protocols, decentralized finance applications, meme tokens, and emerging assets. The fund generates revenue through a unified annual sponsor fee charged on assets under management, which covers operating expenses such as custody, fund administration, and transfer agency services. In addition, the fund generates supplemental income by staking eligible Proof-of-Stake crypto assets and retaining the majority of staking rewards to increase net asset value for shareholders. Cryptex Finance acts as the sponsor and index provider, while institutional authorized participants manage share creation and redemption through an arbitrage mechanism to align the market price with the fund's net asset value.

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