A major fund manager from Brazil, known as Hashdex, has just partnered up with Nasdaq. The two decided to launch the world’s first Bitcoin ETF, and to do it on the Bermuda Stock Exchange (BSX).
Bitcoin ETF coming on BSX
The decision is extremely important for the crypto industry, and so far, it appears that the stock exchange is on board with the idea. In fact, it recently announced that it approved the so-called Hashdex Nasdaq Crypto Index, and that 3 million Class E shares will be issued on the platform and available for trade.
A local media outlet, Infomoney, shared further information regarding the deal. Apparently, the fund is expected to go live and start trading by the end of 2020.
As for why Bermuda and not some other location, Hashdex revealed that the choice fell on this region due to its crypto-friendly regulations.
Attracting institutions to crypto via ETFs: An old idea still persists
ETFs, or Exchange-Traded Funds, have always been considered a way to get institutional investors to get more involved with the crypto industry. ETFs are regulated, as well as insured, and they allow institutions greater exposure to commodities without having them hold the underlying assets.
So far, there were no additional details regarding this specific ETF that the companies were willing to share. The only thing that Hashdex noted is that the methodology and other key information regarding the product will be released when the product launches, by Nasdaq itself.
Marcelo Sampaio, Hashdex’s CEO, spoke with another Brazillian media outlet, Oglobo. He noted that the launch of an ETF would further advance institutional investments into cryptocurrency.
And, while this first Bitcoin ETF will seemingly emerge in Bermuda, Raoul Pal recently predicted that it is bound to emerge in the US, as well.
The US recently allowed its banks to start offering crypto custody services. Since then, crypto-related development surged in the country, and it is likely only a matter of time before someone starts submitting crypto ETF proposals to the SEC again.
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