Bitcoin (BTC) ETF’s had been a hot topic of discussion in the crypto space for a long time now especially in the U.S. where there have been numerous applications, all of which have been turned away by the Securities and Exchange Commission (SEC). However, in a surprising move, the Bermuda Stock exchange (BSX) is now set to launch the world’s first Bitcoin Exchange-traded fund (ETF) according to recent reports.
According to an announcement from the stock exchange, Brazil’s Hashdex is joining hands with NASDAQ to bring the world’s first Bitcoin ETF. The stock exchange approved the ‘Hashdex Nasdaq Crypto Index’ on September 18, stating that 3 million Class E shares will be issued for trade on BSX.
A report from local media outlet Infomoney noted that the ETF would be live on BSX by the end of 2020. The report further adds that Hashdex went with the BSX for its ETF because of the crypto-friendly regulations of the nation.
Crypto Exchange-traded funds have always been considered the key to drawing in institutional investors in this space, as it offers a regulated and insured investment vehicle for investors to access cryptocurrencies.
In a statement to local news outlet Oglobo, Marcelo Sampaio, Hashdex’s chief executive, voiced a similar opinion, stating that this launch will advance institutional investment in the crypto sector.
For now, no further details have been revealed. Hashdex stated that details regarding the methodology and other key information concerning the product will be announced by NASDAQ on the day of launch.
As of now, Hashdex manages $46.4 million worth of assets across four funds that include funds holding crypto assets.
The firm’s is audited by KPMG, and its primary financial institution is Silvergate Bank, while Hashdex’s crypto asset custodians are Xapo, Kingdom Trust, and Vo1t.
Meanwhile crypto ETF’s aren’t coming in U.S. anytime soon as the SEC continues to turn a blind eye towards all ETF applications.
However, Goldman Sachs executive and fund manager Raoul Pal believes that a Bitcoin ETF is imminent in the U.S. as well. 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.”