Like a sea serpent haunting the cryptosphere, the creation of a cryptocurrency exchange-traded fund (ETF) had never before been able to materialize. However, NASDAQ and Hashdex have now accomplished this feat! Explanations.
A crypto-ETF is born under the Bermuda sun
Nasdaq and Hashdex – a regulated Brazilian fund manager – will be able to make available to stock market investors an ETF based on a basket of the main cryptocurrencies.
As a reminder, exchange-traded funds are indices that track the price of underlying assets (they are also called “trackers”). In this case, Bitcoin (BTC) and other major cryptos are used as references for the price of this new index.
The “Hashdex Nasdaq Crypto Index” ETF (that is its name) will be launched on the Bermuda Stock Exchange (BSX).
Bitcoin honoured in this first ever ETF
The detailed composition of the cryptomoney holdings in this ETF highlights Bitcoin, which currently makes up almost 72% of the index. Ethereum comes next, quite far behind, as the second project in terms of weighting, representing 14% of the index.
According to the announcement by BSX on the listing of the Hashdex Nasdaq Crypto Index on September 18th, up to 3 million class E shares may be put on the market. Quoted in US dollars, the first ten units of this ETF have been issued with an initial value of $1,000 each.
The very crypto-friendly environment of Bermuda has proved to be a winning combination, as it explains the choice of this small archipelago of islands for the setting up of this very first ETF in cryptomoney.
Now that a crypto-ETF has managed to get out of the real “Bermuda triangle” in which this type of investment was lost, the entire cryptosphere is once again hoping to see a Bitcoin ETF finally approved by the US SEC. The only real question is: when? We will have to wait, again and again, to get the answer.