The Bermuda Stock Exchange (BSX) announced that it had approved the Hashdex Nasdaq Crypto Index ETF on its trading platform.
The Bermuda Stock Exchange (BSX) announced last week that it had approved the Hashdex Nasdaq Crypto Index ETF on its trading platform. This Bitcoin ETF is a joint venture with Hashdex, a Brazil-based fund manager, and the American stock exchange Nasdaq. The ETF will allow traditional investors to get involved in trading digital assets on exchanges. US companies haveÂ struggledÂ for years to get a Bitcoin ETF approved by financial regulators. In 2019, the Securities and Exchange Commission (SEC) rejected a Bitwise Asset Management proposal for a cryptocurrency ETF, saying such a market didnâ€™t exist.Â
ETF is an investment that can be traded on the stock market.
An exchange-traded fund (ETF) is an investment that can be easily traded on the stock market. A Bitcoin ETF tracks or follows Bitcoinâ€™s price, so people who want to speculate on Bitcoinâ€™s price can do so without actually having to own the asset themselves. The upside is that a crypto ETF allows those involved in traditional finance to invest and trade Bitcoin or other digital assets on the platforms and markets they are already familiar withâ€”leaving things like private keys, storage, and general security to be managed by a third party.
ETF on BSX will cover â€œa portfolio of cryptocurrencies.
The cryptocurrency ETF on the Bermuda Stock Exchange will cover â€œa portfolio of cryptocurrencies and blockchain-based assets that are tracked by the [Nasdaq Crypto] Index,â€ according to anÂ explanatory document. According to the announcement, around three million Class E shares will be available to trade on the Hashdex Nasdaq Crypto Index at $1,000 per share. It is not yet clear which cryptocurrencies will be represented. Earlier this month, the government of Bermuda announced that it is testing a stablecoin. A proposed bank, Jewel, is working on becoming the first bank for digital assets on the archipelago.Â