- The first Bitcoin ETFs will become a reality to the end of the year
- Nasdaq and Hashdex developed the new product
- SEC had an unfavorable opinion about crypto ETFs
Nasdaq and Brazilian Hashdex had arranged to launch crypto-asset ETFs, which will be the first of that kind in the world. Hashdex Nasdaq Crypto Index had got approval from Nasdaq to be traded on its platform. The traders will have an opportunity to trade over three million shares. This new offer will be available on Bermuda’s Stock Exchange, BSX.
Brazilian Infomoney published the news on September 22nd, where wrote that Hashdex’s manager, Sampaio got permission to offer, in collaboration with Nasdaq, the ETF based on cryptocurrencies. “Infomoney” also posted that the crypto ETF trading on the BSX could begin in the next few months.
Nasdaq and Hashdex developed this new product
Hashdex Nasdaq Crypto Index ETF is developed as the partnership of these two and will be listed on BSX. They chose this exchange due to favorable regulations for the new products.
Some details are still missing, but it is expected the crypto ETFs could be ready to trade by the end of this year. The crypto ETF will be similar to the Crypto Nasdaq Index, a collaboration between Hashdex and this stock exchange. Further details will be revealed on the day of launching.
This effort has a long history
For a long time now, similar efforts of launching crypto ETFs have been present. A few years ago, a group of executives worldwide tried that, but the Securities and Exchange Commission (SEC) didn’t approve any project. Such an example was an attempt by the Cameron brothers and Tyler Winklevoss.
Also, the SEC denied accepting crypto ETF offered by Wilshire Phoenix and NYSE broker Arca. This rejection happened in 2020, and the SEC deemed that markets aren’t in the advanced stage of development or sustainably enough to allow crypto ETFs to be traded.
Bermuda has innovative regulations
The island has friendly regulations, which include the crypto-asset market. They succeeded somehow to avoid the influence of the SEC.
Marcelo Sampaio, CEO of Hashdex, said that Nasdaq’s official presence in the digital assets market is proof that crypto investments have higher interest and trust.
“This process should also accelerate the entry of institutional investors in this segment. It is a trend that increasingly becomes concrete”, Sampaio said.
What crypto ETFs you can trade in Brazil
Hashdex has three available crypto funds, created by its manager. One is Discovery, a retail fund with a minimum investment of R $500; the management fee is one percent per year, but the execution fee is zero.
The other is Explorer (qualified crypto ETF) and, last but not least, Voyager with exposures of 20 percent up to 100 percent in cryptocurrencies.
ETF’s launch could push institutional investment in the crypto assets
Hashdex CEO, Sampaio, strongly believes in crypto ETFs’ bright future that confirmed for Ogobo, a Brazilian newspaper. Hashdex runs $46.4 million valued assets divided into four funds; some of them consist of cryptos. Those assets are entrusted into the custody of Xapo and two others.
Several days ago, fund manager Raoul Pal made a prediction that ETFs based on cryptos will soon become available on the U.S. markets. He said:
“I’m going to give you the biggest front-running opportunity of your life: they will get an ETF across the line. There will be billions of dollars that pour into it. Every pension plan will allocate some money to it. Every family office will allocate some money to it. And the more the price goes up, the more they will allocate.”
The reality isn’t in his favor. The SEC had an opposing view of this type of ETFs, which is apparent from their actions.