- Brazil’s Hashdex has partnered with Nasdaq to bring the world’s first Bitcoin ETF to the Bermuda Stock Exchange.
- There are billions of dollars ready to be invested in a Bitcoin ETF.
- The United States Securities and Exchange Commission (SEC) has rejected many proposals for Bitcoin ETFs.
A strategic partnership has been formed between Nasdaq and Brazilian resource manager Hashdex to roll out the world’s first Bitcoin (BTC) Exchange-Traded Fund (ETF) on the Bermuda Stock Exchange (BSX).
World’s First Bitcoin Exchange-Traded Fund
The stock exchange announced that the new Bitcoin ETF is approved to be a Hashdex Nasdaq Crypto Index ETF, along with 3 million Class E shares that will be issued to the market for trading. The ETF will operate on BSX by the end of the year, as per Infomoney.
Hashdex, a Latin America-based firm, has found a secure and user-friendly jurisdiction in order to launch a Bitcoin ETF. Bermuda is considered to be a crypto-friendly place where crypto companies expand their services. Hashdex presently manages $46.4 million worth of funds.
ETF are investment funds that can be traded on a stock market. It provides institutional investors a protected and operated vehicle access to a commodity without holding the underlying assets.
With the Bitcoin ETF, investors no need to be worried about custody. However, several Bitcoin platforms have been attacked in the last years. Thousands of users lost their crypto assets due to hacks. These instances made custody very important for larger investors in the crypto world.
Professionals advice on Bitcoin ETF
Hashdex’s Chief Executive Marcelo Sampaio stated that the ETF is going to have a positive impact on the crypto industry. However, new investors will be able to have access to the crypto sector using a regulated platform.
Moreover, Sampaio mentioned that there are “billions of dollars” ready to be invested in a Bitcoin ETF if this is released ultimately in the United States.
Former Goldman Sachs executive and fund manager Raoul Pal predicted that a Bitcoin ETF is imminent. Therefore, he recommended traders and the audience not to miss the “opportunity of a lifetime”.
Pal advised traders,
You’re allowed to front-run in Bitcoin, and 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.
Rejection of Bitcoin ETFs proposals
A Bitcoin ETF has been one of the targets of investors over years because of the advantages that Pal mentioned. In contrast, the approval of such a product has been met with rejection by the authorities.
In recent years, the United States Securities and Exchange Commission (SEC) has rejected proposals for Bitcoin ETFs from the Winklevoss twins, Wilshire Phoenix, and Bitwise Asset Management and NYSE Arca.
The rejections were mainly credited to SEC Chairman Jay Clayton, and while he is in the post, experts have mentioned that they would not “count on the approval of an ETF in 2020”.