BAGZ
Industry:
Capital Markets

DESCRIPTION

Cryptex Digital Market Cap ETF provides investors with broad exposure to the cryptocurrency market through a single security. The fund, which trades on the Nasdaq under the ticker BAGZ, tracks the Cryptex Digital Market Cap Index, a rules-based portfolio stratified into tiers including major layer networks, infrastructure, decentralized finance, and community assets. Key holdings include Bitcoin, Ethereum, Solana, and XRP. Cryptex sponsors the fund and maintains the underlying index, which features a permanent weight for the Cryptex governance token, CTX. BAGZ allows retail and institutional investors to access crypto assets through traditional brokerage accounts without the technical complexity of direct custody. The fund earns revenue through an annual sponsor fee and seeks additional yield by staking proof-of-stake assets like Ethereum and Solana through third-party providers. While the fund holds most assets directly, it accesses certain tokens like Hyperliquid indirectly through other exchange-traded products. Structured as a Cayman Islands LLC, the fund is not registered under the Investment Company Act of 1940. Authorized Participants manage the creation and redemption of large share blocks using cash or crypto assets, while most investors trade shares on the secondary market.

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