MASHINIi

Hashdex Nasdaq Crypto Index US ETF.

NCIQ.US | Fund management activities

The Hashdex Nasdaq Crypto Index US ETF (NCIQ.US) is an exchange-traded fund (ETF) designed to track the performance of the Nasdaq Crypto Index (NCI). The NCI is a market-capitalization weighted index that measures the performance of a basket of cryptocurrencies that meet certain eligibility requirem...Show More

Ethical Profile

Mixed.

Is Hashdex Nasdaq Crypto Index US ETF (NCIQ.US) ethical? As a passive ETF tracking a crypto index, NCIQ's direct ethical footprint is limited. However, its environmental impact is linked to the energy consumption of underlying cryptocurrencies. Bitcoin mining, for instance, requires substantial electricity, contributing to greenhouse gas emissions. While reports suggest Bitcoin mining utilizes between 37.6% and 58.9% sustainable energy, NCIQ does not actively promote sustainable mining or favor low-energy cryptocurrencies. For most other ethical considerations like fair labor, ethical sourcing, or community impact, there is insufficient evidence to assess NCIQ's direct alignment, given its role as a financial instrument rather than an operating company.

Value Scores

Better Health for All-10
-100100
Fair Money & Economic Opportunity0
-100100
Fair Pay & Worker Respect0
-100100
Fair Trade & Ethical Sourcing0
-100100
Honest & Fair Business-20
-100100
Kind to Animals0
-100100
No War, No Weapons0
-100100
Planet-Friendly Business0
-100100
Respect for Cultures & Communities0
-100100
Safe & Smart Tech0
-100100
Zero Waste & Sustainable Products0
-100100

Better Health for All

-10

The company's core offering, an ETF tracking a crypto index including Bitcoin, has significant negative health impacts. Bitcoin mining results in air pollution (CO2, PM2.5, NOx, SO2) leading to human mortality and climate impacts.

1
In 2018, each $1 of Bitcoin value created was responsible for $0.49 in health and climate damages in the US and $0.37 in China.
2
Between August 2022 and July 2023, Bitcoin mining exposed 1.9 million Americans to higher levels of PM2.5, linked to increased risk of cancer, heart disease, and dementia.
3
The health and climate change "cryptodamages" roughly matched each $1 of Bitcoin value created in December 2018.
4
While other underlying assets like Ethereum and XRP show potential for improving healthcare data, payments, and access, these are largely indirect or potential benefits from applications by other companies, not direct health benefits from the ETF's core offering. The negative health externalities from Bitcoin mining are substantial, with air pollution from power plants supplying Bitcoin mines affecting residents across states.
5

Fair Money & Economic Opportunity

0

No evidence available to assess Hashdex Nasdaq Crypto Index US ETF on Fair Money & Economic Opportunity.

Fair Pay & Worker Respect

0

No evidence available to assess Hashdex Nasdaq Crypto Index US ETF on Fair Pay & Worker Respect.

Fair Trade & Ethical Sourcing

0

No evidence available to assess Hashdex Nasdaq Crypto Index US ETF on Fair Trade & Ethical Sourcing.

Honest & Fair Business

-20

The company analyzes criteria related to the prevention of money laundering and terrorist financing, and follows Financial Action Task Force (FATF) recommendations.

1
Independent auditors, including KPMG, verify custodians following AICPA SOC 2 procedures, and the Net Asset Value (NAV) is calculated entirely independently by U.S. Bank.
2

Kind to Animals

0

NCIQ.US is an Exchange Traded Fund (ETF) that tracks a cryptocurrency index.

1
Its business model is purely financial and service-oriented, involving no physical products, supply chains, animal testing, animal agriculture, or direct interaction with wildlife habitats.
2
Consequently, all KPIs related to animal welfare, cruelty-free practices, and ethical sourcing are not applicable to its operations, as confirmed by the provided articles.
3

No War, No Weapons

0

The company, NCIQ.US, is an exchange-traded fund (ETF) designed to track the performance of the Nasdaq Crypto Index.

1
Its core business involves providing investors with exposure to a diversified portfolio of digital assets, such as Bitcoin and Ethereum. The provided articles, which focus on financial performance, assets, and regulatory aspects, contain no evidence of the company engaging in arms manufacturing, military contracts, dual-use technology development, sales to sanctioned regimes, or any other activities directly related to war or weapons. Therefore, all relevant KPIs are assessed as 'N/A – no defense or arms-related activities in core business' or 'N/A – not applicable to core operations'.

Planet-Friendly Business

0

No specific quantitative data is available for NCIQ.US regarding any of the Planet-Friendly Business KPIs.

1
The provided articles discuss general trends and estimates related to Bitcoin mining's environmental impact, but explicitly state that this data is not specific to NCIQ.US or any particular company.
2
One article directly indicates that there is insufficient data available to generate a sustainability summary for NCIQ.US.
3

Respect for Cultures & Communities

0

No specific, concrete data points were found in the provided articles regarding NCIQ.US's performance on any of the KPIs related to Respect for Cultures & Communities. The articles discuss general ethical implications of cryptocurrencies, cryptocurrency adoption trends among different demographics, and theoretical risks associated with NFTs, but do not provide evidence of NCIQ.US's actions or impacts on cultural or community aspects.

Safe & Smart Tech

0

The company's privacy policy, effective December 9, 2021, states that users can request access and correction of their personal information.

1
It also indicates that data retention is for business purposes or as legally required.
2
Hashdex emphasizes compliance with local regulations, including KYC, AML, and FATF recommendations.
3

Zero Waste & Sustainable Products

0

NCIQ.US is an exchange-traded fund (ETF) that tracks the performance of a basket of cryptocurrencies. As an ETF, it does not directly engage in manufacturing, waste generation from physical products, or operational activities that would typically generate waste or require sustainable product design. The provided articles discuss the environmental impact and waste management practices related to Bitcoin mining and mining equipment manufacturers, not the ETF itself. Therefore, there is no direct evidence to assess NCIQ.US against the KPIs for 'Zero Waste & Sustainable Products'.

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AI-generated analysis based on publicly available data. Not financial advice. Ratings are expressions of opinion derived from automated models and may contain inaccuracies. See our Risk Disclosure for full details.