Brazilian asset manager Hashdex has launched the world's first crypto exchange-traded fund (ETF), the Hashdex Nasdaq Crypto Index ETF. The fund, which is available for trading on the Bermuda Stock Exchange (BSX) for accredited non-U.S. investors, offers a simple solution for institutional investors to gain exposure to the cryptocurrency market.
Developed by Nasdaq and Hashdex, the ETF tracks the Nasdaq Crypto Index (NCI). The index, which is maintained by Nasdaq's calculation agent, CF Benchmarks, and rebalanced quarterly, is designed to represent the investable landscape of the cryptocurrency market through strict eligibility criteria.
"With support from Nasdaq, Nasdaq's calculation agent CF Benchmarks, and BSX, we're delighted to bring to market the world's first crypto ETF. This is a great achievement that shows the maturity of the cryptocurrency market, which garnered a much higher level of respect in 2020," said Hashdex Chief Executive Officer Marcelo Sampaio. "The product should also accelerate the entry of institutional investors in crypto, a trend that has gained incredible momentum in the past months."
Amid growing interest from investors, Hashdex looked to BSX in light of Bermuda's advanced regulation of the digital assets market. In September 2020, BSX announced the listing approval, welcoming a new era in the global cryptocurrency market.
"Institutional interest in Digital Assets is growing rapidly, which necessitates the creation of an adaptable industry-standard index that can both accurately represent the market and remain a relevant benchmark as the asset class matures," said Stephen Koshansky, head of Digital Asset Index Products and Research at Nasdaq. "Nasdaq has worked closely with Hashdex to design criteria for a rules-based methodology that we believe accomplishes these objectives."
For more information on the Nasdaq Crypto Index, please click here.
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