Hashdex Fund partners with Nasdaq to launch first Bitcoin ETF

Brazilian fund manager Hashdex has partnered with Nasdaq to list a Bitcoin ETF (BTC) on the Bermuda Stock Exchange.

World’s First Bitcoin ETF?

A strategic partnership has just been concluded between the Nasdaq and the Brazilian fund Hashdex to deploy the world’s first Bitcoin Exchange-Traded Fund (ETF) on the Bermuda Stock Exchange (BSX).

While no further details regarding the ETF have been made public, Hashdex said the methodology and other key information regarding the financial product will be released by the Nasdaq on the launch date slated for late 2020.

Brazilian fund Hashdex chose Bermuda due to the favourable cryptocurrency regulations in the country.

The launch of an ETF will undoubtedly advance institutional investing. Raoul Pal, former fund manager at Goldman Sachs, predicted that the launch of a Bitcoin ETF in the United States was also imminent:

They will soon authorize the launch of a Bitcoin ETF. There will be billions of dollars going into it. Each pension plan will devote a certain amount to this.

Craze for an ETF 

There is a very big buzz about setting up a BTC Exchange Traded Fund. These funds more commonly known in English Exchange Traded Funds (ETF) correspond to index funds whose units can be sold or bought directly on the stock exchange.

Christopher Dembik, head of macroeconomic research at Saxo Bank, said:

Bitcoin ETF could increase market liquidity and allow managers to offer an investment known to all. 

In recent years, the SEC has rejected many Bitcoin ETF proposals. The gendarme of the American stock exchange notably refused the VanEck & SolidiX Bitcoin ETF in 2019 as well as the Bitcoin ETF project of the twin brothers Winklevoss.