The Brazilian Controlled Investment Manager Hashdex has entered into an arrangement with Nasdaq to establish the Bermuda Stock Exchange (BSX) world’s first crypto asset trading investment.
On September 18, the stock exchange announced that on the website, 3 million Class E shares would be released for trading in the Hashdex Nasdaq Crypto Index. The Nasdaq Affiliate and ETF with Hashdex Chief Executive Marcelo Sampaio have given the confirmation by Cointelegraph Brazil.
The fund should be live, and trade will start on the BSX by the end of the year, according to local media outlet Info money. The study states, because of Bermuda’s crypto-facilitative laws, Hashdex preferred to submit to BSX.
Exchange-traded funds give retail investors a managed and secured mechanism access to commodity exposure without owning the securities underlying them.
Although no other specifics have been published on the ETF, Hashdex confirmed that Nasdaq would publish the formulation and other main product information on the date of the launch of the product.
Sampaio said the introduction of the ETF would advance financial investments in the crypto field in comments to a major Brazilian newspaper.
At present, Hashdex controls four-fund investments valued at $46.4 million, plus crypto-asset keeping funds aside. The company’s auditor is KPMG, Silvergate Bank’s largest financial institution, and Xapo, Kingdom Trust, and Vo1 are the crypto active asset custodians of Hashdex.
Former executive and investment manager Raoul Pal of Goldman Sachs, earlier this week, forecast that the US ETF launch was also imminent, saying that:
I’ll give you the greatest chance to run your life: an ETF is available on the line. Thousands of dollars would be pumped into it. It will be given money in every pension scheme. It will be given some money from every family office and the higher the price, the greater the allocation will be.
In recent years, Bitcoin ETFs from the Winklevoss twins, Wilshire Phoenix and NYSE broker Arca, have been rejected as proposed by the United States Securities and Exchange Commission ( SEC).
A Bitcoin ETF refers to the prices of the world’s most common digital currency. This enables buyers to acquire from the ETF without the dynamic exchange mechanism of Bitcoin itself. Also, since holders of ETF are not investing directly in bitcoin themselves, they do not have to think about cryptocurrency investors’ complex storage and security procedures.
Why bother with a middle guy because bitcoin ETF only represents the price of the crypto-currency itself? Why not invest directly in Bitcoin? This is attributed to several causes. First of all, as described above, investors need not worry about the security procedures related to owning bitcoin and other cryptocurrencies. Also, cryptocurrency exchanges need not be dealt with in the process — investors can only buy and sell the ETF from conventional exchanges and markets.
The emphasis on a Bitcoin ETF instead of on Bitcoin itself is a critical advantage. As the ETF is a tool for investment, investors may shorten ETF’s shares if they expect that bitcoin’s price would fall in the future. In the existing crypto-currency market, this cannot be achieved.