The Brazil Securities and Exchange Commission (CVM) has approved the first Ethereum exchange-traded fund (ETF) in Latin America, by the Brazilian cryptocurrency asset manager QR Asset Management.
Brazil Gets Ethereum ETF
QR Capital announced the news in a tweet thread on Tuesday (July 13, 2021). According to the company, the product will trade on the São Paulo stock exchange B3, under the ticker QETH11.
The new product enables institutional investors to gain exposure to the second-largest crypto by market capitalization in a safe and regulated manner. Also, the Ether ETF will follow the CME CF ether rate to track the performance ether, which is the same used by the Chicago Mercantile Exchange Group.
An excerpt from the announcement when translated reads:
“Expanding the horizon of diversification, QETH11 becomes a simple, safe and regulated option for any investor to gain direct exposure to Ethereum through their preferred brokerage. Without worrying about registrations in exchanges, wallets or private keys.”
QR noted that B3 will be the first stock exchange in Latin America to list a 100% Ethereum ETF. The QETH11 will utilize the “secure institutional custody” of the U.S. cryptocurrency exchange Gemini.
As reported by BTCManager in March, the CVM gave the go-ahead to Latin America first Bitcoin ETF application also by QR Asset Management. The latest development signals an increasing demand for cryptocurrency assets in Brazil
Canada has also approved some crypto-based ETFs. Purpose Investments got a green light from regulators to launch North America’s first Bitcoin ETF back in February. Two more approved BTC ETFs followed shortly after, from Evolve and CI Galaxy Digital Capital Management (CI GAM).
In April, Canadian regulators also approved three Ethereum ETF applications filed by Evolve, Purpose and CI GAM. The fourth Ether ETF came from the major digital asset investment fund manager 3iQ. All Ethereum ETFs are trading on the Toronto Srock Exchange.
The U.S. Continues to Lag Behind
Meanwhile, the United States Securities and Exchange Commission (SEC) is yet to decide on any Bitcoin ETF application filed by different companies. The U.S. regulator is known the either delay its decision or reject an application.
One of the many companies who have indicated intentions to launch a Bitcoin ETF, VanEck saw their proposal postponed by the SEC back in April. In June, the securities watchdog delayed its decision for the second time, stating that it would seek more opinions from interested parties regarding the rule change.
Van Eck, however, implored the SEC to approve a Bitcoin ETF, as investors’ demand continues to grow.