There are currently no regulated cryptocurrency ETFs on the market, so the Hashdex product has every chance of becoming the first of its kind.
Hashdex will be listed on BSX due to the loyal regulation of cryptocurrencies in Bermuda. The company will disclose all data about the new asset on the day of the instrument launch.
Brazilian-registered asset management company Hashdex will launch the HashdexNasdaq Crypto Index, a cryptocurrency ETF co-developed with NASDAQ on the BSX(Bermuda Stock Exchange). The platform has already made an announcement about the listing of the fund. Its shares will become available on the exchange closer to the end of the year.
As it was mentioned, no details concerning the asset are provided to the crypto community. However, one fact was still mentioned: the company will release 3 million E-class shares.
Hashdex manages assets worth $ 46.4 million, which are distributed among three investment funds. The latter, to one degree or another, rely on the Hashdex Digital Assets Index (HDAI), which is also provided by a Brazilian company.
Hashdex funds are audited by the international company KPMG, and its main bank is California-based Silvergate Bank. To store digital assets, Hashdex uses the custody services of Xapo, Kingdom Trust and Vo1lt.
The HDAI is targeted at institutional investors, so the assets in its basket are selected in accordance with “strict eligibility requirements”. HDAI includes only legitimate assets that hold a “significant” market share. Simultaneously, an important selection criterion is the possibility of “storage at the institutional level”.
HDAI rebalancing is done on a quarterly basis. According to Hashdex, its index covers over 78% of the market. Its basket includes 18 crypto assets at the time of writing, including Bitcoin, Ethereum, XRP, Bitcoin Cash and others. It is unknown if the new ETF, like other Hashdex funds, will use HDAI for investments.
As a reminder, there are currently no regulated cryptocurrency ETFs on the market, so the Hashdex product has every chance of becoming the first of its kind. Regulators fear that the cryptocurrency market is too susceptible to manipulation, so they do not give the approval to launch ETFs. For example, the US SEC has rejected at least two ETF launch applications recently: from the New York Stock Exchange (NYSE), Wilshire Phoenix, and Winklevoss twins.