Hashdex, the Brazilian fund manager has said that it has received approval for launching the first Bitcoin (BTC) Exchange Traded Fund (ETF). Hashdex is launching the first Bitcoin ETF of the world on the Bermuda Stock Exchange (BSX) in a collaboration with Nasdaq.
Hashdex Nasdaq Crypto Index ETF
According to a report from the local news site Infomoney, the Brazilian fund manager Hashdex has entered into a partnership agreement with the American stock exchange Nasdaq. As per the partnership agreement, they have collaborated with each other to develop the first-ever Bitcoin Exchange Traded Fund of the world which will be launched on the Bermuda Stock Exchange. This Bitcoin ETF is known as Hashdex Nasdaq Crypto Index ETF.
Hashdex was looking for a secure location where it could launch its Bitcoin ETF. So, it chose Bermuda because of its cryptocurrency-friendly regulations.
No details regarding the launch of the Bitcoin ETF have been disclosed so far. However, according to the report, there is a chance that the fund might be available by the end of this year. Moreover, Hashdex said that Nasdaq will release the methodology as well as the other related information on the launch of the product.
The Chief Executive Officer (CEO) of Hashdex Marcelo Sampaio said that the entrance of the Nasdaq stock exchange into the cryptocurrency market indicates that institutional investors take interest in cryptocurrency. Sampaio added, “This process should also speed up the entry of institutional investors in this segment. It is a trend that increasingly becomes concrete.”
This is not the first attempt that has been made for launching a cryptocurrency or Bitcoin ETF. Many managers from across the entire world attempted to develop such kind of product. However, the Securities and Exchange Commission (SEC) blocked their proposals.
NYSE broker Arca and the investment banking firm Wilshire Phoenix proposed a product this year but this suggestion was also rejected by the United States Agency. SEC said that currently, publicly-traded funds are not suitable because the market is not matured enough for them.