The world’s first-ever Bitcoin exchange-traded fund (ETF) is now going to be launched on the Bermuda Stock Exchange also known as BSX. As per the official statement released by the stock exchange, the new Exchange-traded fund powered by Bitcoin will be called Hashdex Nasdaq Crypto Index ETF and it will be eventually released to the market with 3 Million class E shares.
A distant opportunity was in the making, but the plans to launch a Bitcoin ETF became a reality thanks to the constant efforts of the Brazilian fund manager Hasdex. It collaborated with Nasdaq to ideate the concept of a Bitcoin ETF so that the investors and the users are given a safe and regulatory ecosystem. Both firms and users would apparently get the requisite exposure to the crypto market with the help of a conventional investment platform.
Word from internal sources has also revealed that by the end of the year the ETF will be put into action. Hashdex has been constantly working towards finding a secure and user-friendly jurisdiction for the launch. Bermuda has rather emerged as a crypto-friendly place and this presents an unique opportunity for crypto companies to establish and expand their base.
The Bitcoin ETF will offer its investors a great exposure to the world of cryptocurrency. But the positive catch is that they do not have to hold Bitcoin to serve this purpose. The users, especially the ones that are not quite akin to the flavors of cryptocurrency, now do not have to bother about custodial issues. We are all aware that every year malicious attacks deprive people of their funds which makes custody issues the foremost concern and important link in the chain.
CEO of Hashdex Marcelo Sampaio also implied that the ETF is sure to resound all the positives of the crypto industry. Newer investors in the circuit will have access and gain exposure in crypto through a regulated platform. The platform of a BTC ETF is so promising that in developed nations like the USA investors would be ready to pour in billions in terms of investment.
Bitcoin ETF is long-awaited in the industry. Many firms had submitted requests to the SEC but unfortunately none of them got the green go ahead. The SEC has been hesitant to allow ETF focused on cryptos to come up. There is no denial that a Bitcoin ETF has been an interesting prospect in the market and for a good reason. The ETF tethers to the price of Bitcoin which allows investors to make profits on Bitcoin volatility. And all this without any need for exposure to the crypto markets directly. But sadly the legal framework surrounding it is still emerging.
The CEO also opined about a possibility of a Bitcoin ETF in the US 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.”