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World’s first crypto ETF to list on BSX

The world's first exchange-traded fund designed to track digital assets investments has been approved for listing on the Bermuda Stock Exchange.

The Hashdex Nasdaq Crypto Index ETF, an open-ended investment fund that will operate as a traditional ETF will track the Nasdaq Crypto Index.

An ETF is a basket of different assets bundled together, which trades much like a single stock. The development of an ETF for cryptocurrencies has the potential to open up the sector to a much broader group of investors.

Three million Class E shares of $1,000 each of the new ETF will be issued for trading on the BSX.

The BSX and parent company Miami International Holdings, Inc announced the approval today.

Hashdex is a Brazilian investment manager that has been registered with the US Securities and Exchange Commission since 2018.

Marcelo Sampaio, the CEO of Hashdex, said: “We are truly excited to bring to market the first true crypto ETF in the world with the support of the BSX, MIH and Nasdaq.

“We believe that the launch of the Hashdex Nasdaq Crypto Index ETF is significant and is poised to transform financial markets in big ways in the years to come.”

Greg Wojciechowski, chief executive officer of the BSX, said: “The team at the BSX welcomes the Hashdex Nasdaq Crypto Index ETF listing. The ETF listing is the first structure of its kind to list on the BSX, and dovetails with the BSX's longer-term strategy to support and seek opportunities in the developing fintech industry.”

Thomas Gallagher, BSX chairman and CEO of MIH, said: “We are pleased that the Hashdex Nasdaq Crypto Index ETF chose to list on the BSX — a development that underscores the BSX's commitment to provide exchange support for the emerging digital assets securities market.

“Bermuda's innovative culture and standing as a successful international financial centre were key contributors in MIH's decision to invest in the BSX and Bermuda.”

An overview of the listing on the BSX website states that the ETF's “investment objective is to provide investment results that minimise the tracking difference of the performance of the Nasdaq Crypto Index on a 12-month window”.

The index is being co-developed by Hashdex and Nasdaq, and will be maintained on an ongoing basis by Nasdaq.

“The company will pursue its investment objective through investments in a portfolio of cryptocurrencies and blockchain-based assets that are tracked by the index,” the overview adds.

Appleby (Bermuda) Ltd acted as Bermuda counsel for the Hashdex Nasdaq Crypto Index ETF and Clarien BSX Services Ltd was listing sponsor for the BSX.

Steven Rees Davies, a partner at Appleby, said: “The listing of the Hashdex Nasdaq Crypto Index ETF on the BSX is a great achievement for both the Hashdex and BSX teams and is testament to how real the opportunities are in the digital asset sector for those willing to think outside the box and create solutions that facilitate regulated access to new markets.”

MIH added that through its ownership interest in the BSX, it will provide additional support to the evolving fintech, insurtech and global re/insurance market on a global scale.

Investment opportunity: the BSX has approved the world's first digital assets ETF for listing

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Published September 25, 2020 at 9:00 am (Updated January 26, 2021 at 1:02 am)

World’s first crypto ETF to list on BSX

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