Nasdaq, SEC-Registered Fund Manager to Launch First-Ever Crypto ETF in Bermuda

The first exchange-traded fund (ETF) to broadly track the digital asset market has been accepted to list on the Bermuda Stock Exchange (BSX).

• BSX announced last week the Hashdex Nasdaq Crypto Index ETF had been admitted to list on its trading platform.
• The ETF is the brainchild of Hashdex, a Brazilian-based fund manager that has been registered with the Securities and Exchange Commission (SEC) since 2018.
• An ETF is a basket of different assets bundled together and traded as a single traditional instrument. The development of such a product for crypto is considered bullish as it makes the asset class more accessible to mainstream investors.
• This particular product, which will be denominated in USD, will track an index currently being developed by Nasdaq. Its composition is still under wraps, but CoinDesk understands it will give a broad exposure to the asset class.
• A total of three million shares are available via private placement at $1,000 apiece. At the time of the initial announcement, 10 shares had been sold.
• A number of companies have unsuccessfully tried to get the SEC to approve a bitcoin ETF for the U.S.
• The SEC has expressed concern that a bitcoin ETF remains vulnerable to market manipulation. Most recently, it rejected an application from Wilshire Phoenix in February.
• Like the neighboring Bahamas, Bermuda has expressed an openness to try digital assets. Earlier this month, the government announced a pilot program for a digital token that could quickly distribute financial aid to citizens.
• While small compared to either the New York Stock Exchange or the Nasdaq, the BSX says its market cap is just under $300 million.
• CoinDesk reached out to both Hashdex and BSX for comment but hadn't had a response at press time.
• Nasdaq declined to comment.

See also: WisdomTree Proposes ETF With 5% Bitcoin Exposure Despite SEC’s Long-Standing Blockade