Two New Crypto Exchange Traded Funds Approved By Brazilian Stock Exchange

The very first crypto ETFs (exchange-traded funds) in Latin America have been approved by the Brazilian Stock Exchange (B3). This is certain to open up many doors and opportunities for crypto investors both in the local region and also for international consumers looking to explore and expand their options.

Two cryptocurrencies ETFs approved last week by CVM

As announced by the Brazilian Securities and Exchange Commission, otherwise known as CVM, two cryptocurrencies ETFs had been approved this week. One of these had been 100% Bitcoin, while the other had included five other cryptocurrencies in addition to BTC. Both of these ETFs are going to be trading on the Brazilian Stock Exchange. In fact, a couple of the nation’s banks have already begun offering Hashdex’s ETF. These include both BTG Pactual as well as Itaú.

QR Asset Management is the one who is in charge of the Bitcoin-only ETF, as they will manage it from now on. The reason for them taking on this role is because they believe it can lead to the possibility of launching a very similar product within the United States. This is also due to the fact that the SEC and the CVM are both members of the IOSCO (International Organization of Securities Commissions). Also, for the QR ETF, the Bitcoin price will be calculated via the use of the Chicago Commodities Exchange.

Movement considered an important milestone for Brazilian capital market innovation

The CEO of QR Capital, Fernando Carvalho, views the current movement as extremely important and beneficial for the long term. This is because he believes that this will result in some much-needed innovation for the Brazilian capital market. Upon further elaboration, he also said that the asset might act as a sort of double hedge due to it being both a digital commodity as well as being traded on the world market in dollars.

So far, Hashdex’s ETF is set to replicate the NCI (Nasdaq Crypto Index). The NCI also includes Ethereum, Chainlink, Litecoin, Stellar and Bitcoin Cash in addition to regular Bitcoin. It is also rebalanced on a quarterly basis. Only time will tell how all of this will pan out for the Brazilian market, though, as there are always known variables. Still, things seem to be going well for now. As of the time of this writing, Canada is the only other nation that has approved its own BTC ETFs.

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