Investment

The Brazilian Stock Exchange is approving two new crypto ETFs in Latin America

The Brazilian Securities and Exchange Commission (CVM) has approved two cryptocurrencies ETF this week – one 100% Bitcoin and others folded five cryptocurrencies, except bitcoin (BTC).

For QR Asset Management, ETF product manager for bitcoins only could accelerate the launch of a similar product in the United States because CVM and the Securities and Exchange Commission or the SEC are part of the International Organization of Securities Commissions (IOSCO).

Both ETFs will be traded on the Brazilian Stock Exchange, or B3. According to Brazil Journal, two of the country ‘s major banks, Itaú and BTG Pactual, have already announced that they offer Hashdex ETFs to their customers.

The QR ETF will trade on B3 with the ticker QBTC11, while the one from Hashdex will have the ticker HASH11. Trading on ETF HASH11 is expected to begin this month, while ETB QBTC11 is expected to begin in Q2 2021.

In the case of the QR ETF, the index used to calculate the bitcoin price will be the Chicago Commodity Exchange.

Fernando Carvalho, CEO of QR Capital, the holding company of QR Asset, sees the movement as an important milestone for innovation in the Brazilian capital market. In an internal communication with Cointelegraph he said:

“Our ETF, which is to be traded with the QBTC11 ticker, is a milestone in the Brazilian market.” The asset ultimately acts as a double hedge, as it is a digital commodity and is also traded in dollars on the world market. Its price is unrelated to other asset classes, which means that it is increasingly being adopted by large managers and investors within diversified portfolios. “

The Hashdex ETF replicates the Nasdaq crypto index (NCI), an index developed by Nasdaq and Hashdex. In September 2020, the Brazilian Hashdex received approval from the Bermuda regulator and approved with the Nasdaq the first bitcoin ETF in the world – crypto index Hashdex Nasdaq ETF.

Apart from Brazil, the only other countries approve its own bitcoin ETF is Canada.

NCI consists of six cryptocurrencies: Bitcoin, Ethereum (ETH), Stellar (XLM), Litecoin (LTC), Bitcoin cash (BCH) and Chainlink (LINK) and is exported quarterly.

Safekeeping of Hashdex assets manufactured by companies such as BitGo, Coinbase, Fidelity and Gemini, all of which are brokered and regulated in the United States.



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