Brazilian Regulators Give Greenlight to Latin America’s First Ethereum ETF

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. 

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Brazil’s CVM Approves Latin America’s First-Ever Bitcoin ETF

This year has been a promising one for Bitcoin ETF approvals as yet another exchange-traded fund monitoring the success of the first-ever cryptocurrency will arise – this time, in Brazil.  CVM, Brazil’s exchange commission,  gave QR Capital’s application the go-ahead, and the commodity, QBTC11, will be live on the Sao Paulo stock exchange.

Bitcoin ETF Approved in Brazil

QR Capital notes that this is the fourth Bitcoin ETF to emphasize the importance of the CVM decisions.

Brazil became the second country to authorize a Bitcoin-tied ETF after three of these were released in Canada earlier this year. B3 is also the second stock exchange worldwide to provide access to this commodity.

QR Capital has its headquarters in Rio de Janeiro and is known in Latin America as “the largest crypto asset manager.” The organization recently tried its hands on the growing tendency to apply for the Bitcoin ETF, and today it revealed the green light from the Brazilian watchdog.

The prominent Sao Paulo stock exchange will host the exchange-traded fund live, under the QBTC11 ticker. The contracts are exchanged and run by the Chicago Mercantile Exchange (CME), and the BTC future contracts follow the CME CF Bitcoin Reference Rate.

QR Capital said it would allow local citizens more straightforward and easy to get to grips with primary crystal without worrying about storing and handling the properties by launching Bitcoin’s initial ETF in Latin American countries.

The Clock is Ticking in the U.S.

Recent approvals of Bitcoin ETFs have been listed in the publication. As previously reported by CryptoPotato, BTCC – the BTC ETF product launched by Intent Investments, was authorized by the Ontario Securities Council (OSC).

In the first month following its publication, this initiative was a huge success. Purpose Investments yesterday revealed that its Bitcoin-ETF had only reached $1 billion in assets under management on its one-month anniversary.

The U.S. $5 trillion ETF Market is yet to come from Bitcoin. VanEck, WisdomTree Investments, and NYDIG submitted their proposals to the  SEC earlier this year. Others such as Valkyrie Digital Assets and VanEck Associates Corp are also waiting for approval from the securities regulator.

Earlier this week, VanEck’s filing, now available in the Federal Register, was formally recognized by Regulator. The SEC is scheduled to decide in May following the comment period up to April 9.

The business has taken the U.S. ball, where the SEC has so far denied all applications by Bitcoin ETF. QR Capital does, however, conclude that the QBTC11 approval will accelerate the launch of a similar product in the U.S.

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