Brazilian Fund Manager Hashdex Launches World’s First Crypto ETF in Partnership with Nasdaq

UTC by Bhushan Akolkar · 2 min read
Brazilian Fund Manager Hashdex Launches World’s First Crypto ETF in Partnership with Nasdaq
Photo: Depositphotos

The Hashdex Nasdaq Crypto Index ETF has received approval from the Bermuda regulators and will be listed on the Bermuda Stock Exchange (BSX) by the end of 2020.

Hashdex, the regulated Brazilian fund manager has entered a new deal with Nasdaq to launch the world’s first crypto index exchange-traded fund (ETF) listed on the Bermuda Stock Exchange (BSX).

BSX announced that it has approved the ‘Hashdex Nasdaq Crypto Index ETF’ last week on September 18. As per the announcement, the exchange will issue 3 million Class E shares for trading on the platform. ETFs are basically funds that replicate the indices, however, traded similar to stocks. This crypto ETF will replicate the Nasdaq Crypto Index. Also, the major aim would be to creating a conducive environment for institutional players to participate in the crypto market.

Local media outlet Infomoney reported that the crypto ETF will go live for trading on the BSX exchange by end of this year. The fund manager said that they chose Bermuda because of its regulations. The ETFs are regulated and insured vehicles making it easy for big investors to hold the underlying assets.

The will make it the world’s first Bitcoin ETF to get a regulatory nod. A number of big players have applied for it in the past, however, they had a tough time convincing the U.S. SEC.

Hashdex CEO Expresses Confidence in Nasdaq Partnership

Currently, no further details regarding the Crypto ETF are available. Hashdex said that they would be releasing the ETF methodology and other information at the launch time. Marcelo Sampaio, CEO of the Brazilian fund manager, said that Nasdaq’s involvement will help them attract more institutional investors to crypto.

“This process is also expected to accelerate the entry of institutional investors in this segment. It is a trend that is increasingly becoming concrete,” he said.

U.S. SEC Commissioner Hester Pierce, also popular as the crypto mon, has always spoken in the favour of the crypto community. With SEC’s multiple rejections of the Bitcoin ETF in the past, Commissioner asked the regulator to be more open to new innovations. While disapproving the earlier stand of the SEC, Commissioner Pierce said:

“no filing will meet the ever-shifting standards that this Commission insists on applying to Bitcoin-related products—and only to Bitcoin-related products.”

Recently, former Goldman Sachs executive and fund manager Raoul Pal said that the arrival of Bitcoin ETF in the U.S. is imminent. Well, there’s been no specific timeline that one can predict. However, any such development will lead to a massive bull run in Bitcoin.

Bitcoin News, Cryptocurrency news, News
Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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