Janus Henderson puts Nasdaq-100 fund JQQQ on Stellar

Janus Henderson and Centrifuge launched JQQQ on Oct. 27, a fund that brings licensed Nasdaq-100 exposure to the Stellar blockchain. The firms say it is the first blockchain-native fund to offer that exposure through an issuer-sponsored strategy. In its launch announcement, Janus Henderson said the fund seeks to track the index under license from Nasdaq.

How is JQQQ set up?

JQQQ is built to be issued and operated on a public blockchain, rather than to represent a tokenized copy of an existing fund, according to the announcement. Janus Henderson manages it, and Centrifuge provides the infrastructure for its onchain operation. The fund is launching only on Stellar.

The legal structure is more layered: JQQQ is a segregated portfolio of Anemoy Capital SPC Limited, a British Virgin Islands company. Anemoy Asset Management Limited is the investment manager, and Janus Henderson Investors US LLC is the sub-investment manager, the announcement says. A segregated portfolio is a separate pool of assets and liabilities within a company.

Who can invest, and what does a share represent?

The fund is available only to eligible investors in places where it can lawfully be offered, and it is not available to U.S. persons, according to Janus Henderson. The announcement does not give a fee rate or minimum investment. Unchained’s report on the launch also notes that neither was disclosed.

JQQQ gives indirect economic exposure to an investment product that tracks the Nasdaq-100. Its shares do not give holders ownership rights in the index, Janus Henderson’s legal notes say. The value can differ from the index, and investors could lose money if the fund fails or winds up.

What can the onchain format enable?

The firms say blockchain issuance could let fund shares connect to digital financial applications and programmable portfolios. They also point to possible uses as collateral or in lending. But those uses would depend on independent third parties; Janus Henderson says it does not offer, arrange or endorse them. The announcement does not confirm that any such service is currently available to JQQQ investors.

Sources and documents

• launch announcement — janushenderson.com
• Unchained’s report on the launch — unchainedcrypto.com