The product tracks the Nasdaq Crypto index to yield an accurate sample of the market. The United States Securities Exchange Commission has yet to approve the first bitcoin ETF.
The Brazilian Securities and Exchange Commission (CVM) authorized the launch of the exchange-trade fund (ETF) for bitcoin and other cryptocurrencies that crypto asset manager Hashdex is leading. The product is the first investment fund of this nature to make life in Latin America.
Samir Kerbage, CTO of Hashdex, announced during a virtual conference he participated in on March 17. Information published on the company’s website details that the product tracks the Nasdaq Crypto Index (NCI), developed by Nasdaq and Hashdex, and appears to be an option for institutional investors to gain exposure to the cryptocurrency market.
The Hashdex ETF replicates the composition of the NCI, which bases its core on six crypto assets, bitcoin (BTC), ether (ETH), the native cryptocurrency of the Ethereum network, litecoin (LTC), Chainlink (LINK), Bitcoin Cash (BCH) and Stellar (XLM).
The ETF offers several entry points. Investors can gain exposure by investing in the Hashdex Nasdaq Crypto Index through various investment platforms linked to the Sao Paolo Bermuda Stock Exchange (BSX), the Stock Exchange.
Brazilian investors will gain total access through the group of operators managed in Hashdex, including XP, BTG, Rico, Órama, and Genial. Also, non-US organizations can enter through operators in BSX. At the same time, United States entities will only be able to invest through private placement.
According to some digital media, the minimum collection to make the ETF offer viable is 250 million reais (USD 45 million). It will complete a transaction with the HASH11 ticker.
Bitcoin (ETFs) are exchange funds that track the queen cryptocurrency value ( BTC ). ETFs work on traditional markets rather than on cryptocurrency exchanges.
With these investment alternatives, the price of a share in the exchange fund fluctuates with the cost of bitcoin (BTC). If the value of the crypto asset increases, so does the ETF, and vice versa. Instead of being listed on a cryptocurrency exchange, the ETF appears on a stock exchange. Under this formula, investors do not buy BTC directly but rather a share that follows this asset’s price.
A Whole New Wave of Institutional Interest in Bitcoin Hits the Shores
A completely new wave of institutional interest has fueled bitcoin and also shown an increasing interest in cryptocurrency growth. Other market players are taking into consideration launching their own ETFs.
A fascinating case is Grayscale, seeking expertise in exchange-traded funds and clarifying that it would soon seek green light from the United States Securities and Exchange Commission (SEC) to bring a better and more exclusive investment tool.
However, until now, the SEC is still studying the entry of these assets into its stock. Some of these assets are waiting for approval. Van Eck is perhaps one of the most relevant cases whose application is still pending.
In North America, various bitcoin ETFs have already received assistance from regulators. As CriptoNoticias reported, in Canada, the investment management company CI Global Asset Manager is the third firm based on the Toronto Stock Exchange with these products.
By: Jenson Nuñez
