World’s first crypto-based fund to be listed on the NSE
A planned crypto-based exchange traded fund (ETF) by Badoer Group ADK ETF is taking shape in Kenya. The ADK ETF is poised to be the world’s first crypto ETF listing and other procedures have been confirmed for the proposed launch in the first quarter of 2019.
The founder of ADK, Ricardo Badoer, was in Kenya last week to finalise the ETF listing arrangement with the Nairobi Securities Exchange. He met with the NSE’s commercial director, Ms Bahati Morara, and the head of Innovation and Project Management, Mr Irungu Wagema.
The crypto space has been clamouring for an ETF especially in the last two years. The premise is that an ETF will ensure some form of regulation in the crypto industry and expose the new asset class to many investors. However, attention has been focused on the US, and its financial regulator, Securities and Exchange Commission (SEC), to approve an ETF but most applications have either been rejected or decisions postponed.
Despite being in an uncharted crypto ETF space with rooms to learn along the way, ADK’s expected debut with an Africa-based ETF seeks to bring high value to the cryptocurrency as it opens the market to mainstream investors. It will also make it easy for regular investors, especially those who invest in the stock market, to own cryptocurrencies without having to deal with the technical knowledge involved.
Since the ADK ETF will be fully regulated by a stock exchange, it would attain a legal tender status and thus relieve investors of any tax or banking issues. About 50% of the total ADK in supply would be available for the ETF, that is 12.5 millionADK. Interested investors in the ETF would have to open an account through a broker and pass KYC (know your customer) scrutiny to gain access to the NSE.
ADK is also working to expand its banking network: Badoer owns 16% shares in Sumac Bank in Kenya and 23% in a Tanzania’s Hakika Microfinance Bank. There is a plan to launch an EU-based bank in coming months.
See Also: A guide to creating a successful crypto-currency portfolio
These moves are to ensure investors have access to ADK wallets and full exchange to trade ADK for fiat in their bank accounts within seconds. These accounts could be linked directly to ADK bank debit cards or fiat could be transferred to other banks. The bank-related usage of ADK is expected to lead to higher demand and value.
ADK is an open source project that focuses on privacy, decentralisation and scalability. It is a secure, private and untraceable solution to the problem of a lack of financial privacy as it can process crypto to fiat transactions in seconds.