Brazilian Asset Manager Hashdex Plans for World’s First Crypto Exchange-Traded Fund (ETF)

On Tuesday, February 9, Brazilian asset manager Hashdex announced plans to launch the world’s first crypto exchange-traded fund (ETF). Dubbed as the Hashdex Nasdaq Crypto Index ETF, the crypto fund will be first listed on the Bermuda Stock Exchange.

Developed in partnership by Hashdex and Nasdaq, the fund will be accessible for trading to accredited non-US users. The announcement notes that Brazilian investors can gain exposure to the fund through the family of feeder funds managed by Hashdex. Marcelo Sampaio, CEO of Hashdex also spoke about their collaboration with Nasdaq. He said:

“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. In addition, the launch also consolidates our presence as a relevant global player in this segment. The product should also accelerate the entry of institutional investors in crypto, a trend that has gained incredible momentum in the past months.”

Giving Institutional Players Crypto Exposure with Hashdex ETF

Being completely regulated, the product offers institutional investors a simple solution to get access to cryptocurrencies. The Nasdaq Crypto Index (NCI) offers an investable landscape for digital currencies via strict eligibility criteria. It also rebalances quarterly for attaining current representation for the market.

Nasdaq’s calculation agent, CF Benchmarks maintains the Nasdaq Crypto Index (NCI). The NCI tracks the performance of a diverse basket of USD-traded digital assets such as Chainlink (LINK), Stellar Lumens (XLM) and Bitcoin Cash (BCH).

Bitcoin (BTC) is currently having the highest weightage on the NCI with 78.61%. Ethereum (ETH) holds the second-highest weightage of 16.86%. Speaking to CoinDesk, Sui Chung, CEO of CF Benchmarks, said:

“The Nasdaq Crypto Index represents another leap toward the institutionalization of crypto as investors look for broader exposure to the digital asset class”.

“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. Nasdaq has worked closely with Hashdex to design criteria for a rules-based methodology that we believe accomplishes these objectives,” said Stephen Koshansky, Head of Digital Asset Index Products and Research at Nasdaq.

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