Marcelo Sampaio, Brazilian fund manager, in partnership with Nasdaq, will launch the world's first cryptocurrency exchange fund (ETF) on the Bermuda Stock Exchange (BSX).
Hashdex, the company that regulates the fund, has obtained authorization to launch the ETF. The investment is called Hashdex Nasdaq Crypto Index ETF. The launch will take advantage of recent pro-crypto regulations in the region (Bermuda Island).
In a comment, the fund manager says:
“This process is also expected to accelerate the entry of institutional investors into this segment. It is an increasingly concrete trend ”.
The entry of institutional investments in this market still depends a lot on the regulations of cryptocurrencies in the world. Several countries are moving towards regulating this 'gray' market to allow the more conservative investors to indirectly allocate resources in cryptocurrencies.
Several companies in the United States have attempted to create ETFs on the country's stock exchanges. However, all applications were denied by the Securities and Exchange Commission (SEC). Several people, such as investor Hester Peirce, report the regulatory agency's "unwillingness" to accept ways to access the cryptocurrency market.
The Hashdex Nasdaq Crypto Index ETF can usher in a market with the possibility of large investments. However, it is difficult to predict the percentage of investors who prefer to invest indirectly in cryptocurrencies by those who prefer to have control over their private keys. So creating more funds like this may not significantly affect the market.
It is important that there are other forms of institutional investments that do not need approval from regulatory agencies. For example, MicroStrategy recently acquired more than 38,000 bitcoins. This purchase raised MicroStrategy shares significantly.