Bitcoin, News & Updates

Bitcoin ETF Launched in Bermuda

Last Friday, the Bermuda Stock Exchange (BSX) announced that it had approved the Hashdex Nasdaq Crypto Index ETF on its trading platform. This is a joint venture with Hashdex, a Brazil-based fund manager and American stock exchange Nasdaq.

The announcement came after US companies struggled for several years to get a Bitcoin ETF permitted. In the previous year, the Securities and Exchange Commission (SEC0) rejected the proposal from Bitwise Asset Management for a cryptocurrency ETF, saying that such a market didn’t exist. Meanwhile, Europe has several crypto exchange-traded products; it didn’t have a crypto exchange-traded fund.

The ETF is an investment that can be traded on the stock market easily. A Bitcoin ETF can track or follow the price of the Bitcoin so that people who may want to speculate the cost of the Bitcoin can do so without particularly having to own the asset by themselves.

The benefit is that a crypto ETF can allow the individuals involved in traditional finance to invest and trade Bitcoin or any other digital assets on the platforms and markets that they are already familiar with – it leaves things like private keys, storage, and general security is managed by a third party.

The crypto ETF on Bermuda will cover a “portfolio of cryptocurrencies and blockchain-based assets that are tracked by the [Nasdaq Crypto] Index,” as what an explanatory document says. Some three million Class E shares will now be available to trade on the Hashdex Nasdaq Crypto Index at $1,000 per share. It is not clear, however, which cryptocurrencies will be represented.

British overseas territory in the Atlantic Ocean, Bermuda, is an increasingly crypto-friendly nation. For this month, the government has announced that it is testing a stablecoin. A proposed bank named Jewel is working on becoming the pioneer bank for digital assets in the archipelago.

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