Hashdex disclosed on July 23 that its Nasdaq CME Crypto Index ETF (NCIQ) will allocate a portion of its crypto holdings to staking, with net staking revenue distributed to shareholders after an annual threshold. The plan follows a Form 8‑K filing that names Coinbase Cloud as the initial staking provider and indicates that staking is expected to commence promptly, pending operational readiness. Under the July 23 prospectus supplement, the staking provider retains its share of gross rewards. Hashdex receives all remaining net staking income up to a threshold equal to 0.25% of the common‑share net asset value through one Sponsor Share, an unlisted class held solely by the sponsor. Income exceeding that threshold is split 40% to Hashdex and 60% to the trust for holders of publicly traded NCIQ common shares. The threshold is measured annually and prorated for partial years. If net staking income does not exceed the threshold, no amount is allocated to the trust. For example, if net staking income reached 1% of common‑share NAV after provider fees over a full year, the trust would receive 0.45% and Hashdex would retain 0.55%, consisting of the first 0.25% and 40% of the remaining 0.75 percentage point. These figures are illustrative and not a forecast. The sponsor share return is separate from NCIQ’s 0.25% annual management fee and is not netted against it. Hashdex lists fee percentages for staking rewards: 8% of gross ether staking rewards, 8% of Solana validator commissions, and 5% of Cardano validator commissions, as shown on its product page. As of July 26, NCIQ’s holdings consisted of 11.75% Ethereum, 3.17% Solana, and 0.49% Cardano, representing a combined 15.41% of the fund, though this amount is not the portion intended for staking. The fund targets a staking allocation of 10% to 20% of total net asset value. Risks include temporary asset lock‑up during unbonding periods, potential reductions in rewards from validator failures or slashing, and possible complications in redemption and rebalancing that could widen the tracking difference between NCIQ’s net asset value and its underlying price index. The filing does not quantify the magnitude of any tracking difference, leaving the impact on shareholder returns uncertain.