The Brazilian Stock Exchange (B3) approved the initial crypto ETFs from Latin America and contributing to a new milestone for the market.
The Brazilian Securities and Exchange Commission, or CVM, approved two cryptocurrency ETFs this week — one 100 percent Bitcoin and another written of five cryptocurrencies, along with Bitcoin (BTC).
For QR Asset Management, director of the Bitcoin-only ETF, the product could quicken the launching of a similar merchandise in the USA, as the CVM, in Addition to the Securities and Exchange Commission, or SEC, are part of the International Organization of Securities Commissions, or IOSCO.
The two ETFs will be traded around the Brazil’s Stock Exchange, or B3. According to Brazil Journal, two of the country’s major banks, Itaú and BTG Pactual, have already stated to offer Hashdex’s ETF to their clients.
The QR ETF will exchange on the B3 using all the ticker QBTC11, while the one from Hashdex will possess HASH11 as its ticker. ETF HASH11 trading is expected to begin this month, while QBTC11 ETF is anticipated to start in Q2 2021.
In the case of QR ETF, the index used to calculate the price of Bitcoin will be the Chicago Commodities Exchange.
Fernando Carvalho, CEO of QR Capital, holding company of QR Asset, sees this movement as a significant milestone for invention in the Brazilian capital market. In inner communicating with Cointelegraph, he explained:
“Our ETF, to be traded with the QBTC11 ticker, is a landmark in the Brazilian market. The advantage ends up acting like a double hedge, as it is a digital product and at the exact same time, it is traded in dollars on the world market. Its price is irrelevant with additional asset classes, meaning it is increasingly being adopted by large managers and investors inside diversified portfolios”
Hashdex’s ETF will replicate the Nasdaq Crypto Index (NCI), an indicator developed by Nasdaq and Hashdex. Back in September 2020, the Brazilian Hashdex obtained approval from the Bermuda regulator and together with Nasdaq, approved the world’s first Bitcoin ETF — the Hashdex Nasdaq Crypto Index ETF.
Past Brazil, the only other country to approve its own Bitcoin ETFs is Canada.
NCI consists of six cryptocurrencies: Bitcoin, Ethereum (ETH), Stellar (XLM), Litecoin (LTC), Bitcoin Cash (BCH) and Chainlink (LINK), and can be rebalanced quarterly.
Custody of Hashdex’s resources is created by companies like BitGo, Coinbase, Fidelity and Gemini, that are mediated and regulated in the united states.