The Nasdaq Stock Exchange today announced the launch of the Hashdex Nasdaq Crypto Index ETF, based on its NCI cryptocurrency index. It can be traded by accredited investors outside the United States.
An ETF, or Exchange Traded Fund, as the name suggests, is an index fund whose shares are traded on an exchange. It is assumed that the launch of a Bitcoin ETF in the United States will significantly expand the availability of investments in cryptocurrency for participants in the traditional market, but regulators have not yet approved a single application for the creation of such an instrument.
The new ETF will be traded on the Bermuda Stock Exchange (BSX), where fewer investors will be able to work with it than in the US. However, the launch of the fund reflects the interest of firms specializing in exchange-traded products in the traditional finance space and providing data for them to create cryptocurrency offerings. S&P Global and the Chicago Board Options Exchange (CBOE) previously announced the preparation of their own indices, which in the future may form the basis of similar instruments.
The development of the Nasdaq cryptocurrency index began in July 2020. Brazilian investment manager Hashdex also took part in the process. For the first time, the ETF listing approval on the Bermuda Stock Exchange was announced in September 2020.
The Nasdaq said it wanted to present an index that would reflect the most liquid and preferred cryptocurrency assets for large institutions. It currently includes six digital assets: Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Chainlink, and Stellar Lumens. The exchange expects it to be used in other similar products in the future, covering additional geographic regions and customer types.
“The product should accelerate institutional investors’ accession to cryptocurrencies. This trend has been gaining incredible momentum in recent months, ”said Hashdex CEO Marcelo Sampaio.