Nasdaq Crypto Index ETF Goes Live In Bermuda: Report

The Nasdaq crypto index ETF goes live on the Bermuda Stock Exchange and the ETF is a joint effort of the Brazilian fund manager Hashdex and US stock exchange Nasdaq that will help institutional investors get more exposure to cryptocurrencies without holding them so let’s read more in today’s crypto news.

The Hashdex Nasdaq Crypto Index ETF was listed on the Bermuda Stock Exchange as per a press release. The ETF is a joint project of the Brazilian fund manager Hashdex and the American platform Nasdaq that was revealed back in 2020 when BSX announced the listing. At that time, the exchange revealed that the ETF comprised three million Class E shares with each worth $1000. The ETF comprises a basket of crypto assets and the lion’s share of it is made up of BTC and ETH with Bitcoin Cash, Litecoin, Chainlink, and Stellar amounting between $0.65% and 1.58% each. Sui Chung, the CEO of CF Benchmarks noted:

“The Nasdaq Crypto Index represents another leap towards the institutionalization of crypto as investors look for broader exposure to the digital asset class. Built and calculated to the standards that are expected by traditional financial institutions, indices like the NCI and others offered by CF Benchmarks are fast becoming the launchpad for a whole host of financial products that will ultimately make cryptocurrencies even more accessible to a wider audience, driving adoption all around the world.”

Crypto ETFs allow investors to get more exposure to digital assets without buying or holding them. The ETF is usually following the price of an asset or a bulk of them traded as one single traditional instrument. Since ETFs can be traded on traditional stock markets, their holders can invest in BTC or other cryptocurrencies. However, there was no other American company that was able to launch a BTC ETF because the US SEC turned down all proposals over the past few years. As an alternative to the ETF was the crypto trust. Grayscale has a Bitcoin trust with over $27 billion worth of BTC under management and it is still buying more coins on behalf of the clients.

02/08/21 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.

Total AUM: $33.4 billion$BTC $BCH $ETH $ETC $ZEN $LTC $XLM $ZEC pic.twitter.com/OOjv6jHsUK

— Grayscale (@Grayscale) February 8, 2021

The Toronto Stock Exchange also announced an ETH-based ETF after the 3iQ Ether Fund raised over $75 million thanks to the contributions from Canadian investors. Valkyrie Digital Assets became the latest company to apply for a Bitcoin ETF with the SEC.