Brazil SEC Has Approved Latin America’s First 100% Ethereum ETF
QETH11 will be the first Brazilian ETF to invest 100% of its equity in the second largest cryptocurrency in the world; listing on B3 has no date set yet.
Two of the main managers of criptomoedas of Brazil live a close race for the protagonist position in the industry. On Tuesday, 13th July, the same day that Hashdex announced the bitcoin fund BITH11, QR Asset Management announced the approval, by CVM, of the first ether ETF in the country, the QETH11.
The release comes about a month after QR launched QBTC11, the first national ETF that invests 100% of its assets in bitcoin. Now, the company will have an index fund focused on the second largest cryptocurrency in the world, as the QETH11 will only invest in ETH.
The ETF will replicate the price of the Ethereum network’s cryptocurrency according to the “CME CF Ether Reference Rate”, one of the broadest and safest on the market, used by the Chicago Mercantile Exchange Group (CME), the world’s largest derivatives exchange.
There is still no forecast for the listing of the new ETF on the B3, the Brazilian stock exchange, but the CVM decision already guarantees its launch in the near future. With QETH11, Brazilian investors will be able to seek exposure to the two largest cryptocurrencies in the world with the purchase of ETFs, which are regulated and easily accessible.
In addition to ETFs, investors interested in allocating part of their equity can opt for investment funds or the direct purchase of digital assets, in specialized brokers or directly with other people, but this option requires precautions and some knowledge about their custody.
QR Asset Management commented:
“The Brazilian investor now has the possibility of exposure to the two largest and most valuable digital assets in the world, in a regulated, simple and secure manner. It is no longer necessary to register in exchanges, create private keys or worry about secure custody, since the fund has institutional-level custody in deep cold storage , provided by Gemini – a company specializing in the custody of cryptoactives founded by the Winklevoss twins – a service not very accessible to the common investor.”
The CVM approval is yet another example of Brazil’s advanced stage in relation to the adoption of cryptoactives. In addition to bitcoin and now ether ETFs, the country also has an ETF that invests in a basket of cryptocurrencies, HASH11, and a number of investment funds focused on digital assets. It also shows crypto acceptance of the main national regulatory bodies.
The new ether ETF that will be listed on the Brazilian stock exchange is also one of the first of its kind in the world. Currently, only Canada has similar products available to investors.
