Brazil approves two more crypto index funds (ETFs)
In addition to a pure bitcoin ETF, an index fund consisting of several cryptocurrencies will soon be tradable on the Brazilian stock exchange.
The Brazilian Securities and Exchange Commission (CVM) approved two new crypto ETFs this week. While one of the two index funds is entirely based on Bitcoin (BTC), the other includes five other cryptocurrencies in addition to the crypto market leader.
QR Asset Management, the asset management company behind the pure Bitcoin ETF, suspects that the approval of its index fund could accelerate the release for comparable Crypto Profit review investment products in the US. The background is that the Brazilian CVM, just like the American SEC, belongs to the international association of stock exchange regulators.
Both crypto ETFs are traded on the Brazilian stock exchange B3. As the Brazil Journal reports, Itaú and BTG Pactual, two of the country’s largest banks, have already included the Hashdex ETF, which consists of several cryptos, in their range of services.
QR’s index fund trades on B3 under the ticker QBTC11, while the Hashdex ETF is listed as HASH11. The HASH11 ETF is scheduled to launch as early as this month, whereas the QBTC11 ETF will not be available until the second quarter of 2021.
The basis for calculating the index of the QR ETF is the bitcoin price on the Chicago Options Exchange (CME)
Fernando Carvalho, the CEO of QR Capital, the parent company of QR Asset, sees the new ETF as an important development step for the Brazilian capital markets. Thus, he states to Cointelegraph:
„Our ETF under the ticker QBTC11 is a milestone for the Brazilian market. This investment product is a double hedge, as it is a digital commodity on the one hand and is traded in US dollars on the other hand on the global market. Its price is independent of other asset classes, which means it is increasingly being taken up by influential asset managers looking to diversify their portfolios.“
The Hashdex ETF is in turn based on the Nasdaq Crypto Index (NCI), which Hashdex previously developed in cooperation with the Nasdaq Stock Exchange. In September 2020, the Brazilian company had collaborated with Nasdaq to greenlight the Hashdex Nasdaq Crypto Index, the world’s first bitcoin ETF.
Besides Brazil, only Canada has approved a bitcoin ETF so far.
The NCI consists of the six cryptocurrencies Bitcoin, Ethereum (ETH), Stellar (XLM), Litecoin (LTC), Bitcoin Cash (BCH) and Chainlink (LINK).
The custody for Hashdex is taken over by well-known industry giants such as BitGo, Coinbase, Fidelity and Gemini, all of which are regulated in the USA.