The Brazilian SEC [Securities and Exchange Commission], or CVM, approved two cryptocurrencies ETFs within this week – one 100% Bitcoin and therefore the other composed of 5 cryptocurrencies, additionally to Bitcoin [BTC].
For QR Asset Management, manager of the Bitcoin-only ETF, the product might accelerate the launch of an identical product within the U.S., since the CVM, also as the SEC [Securities and Exchange Commission], is a part of the IOSCO [International Organizations of Securities Commissions].
Both ETFs are going to be traded on Brazil’s stock market, or B3. Consistent with Brazil Journal, two of the country’s main banks, Itaú and BTG Pactual, have already started to offer Hashdex’s ETF to their users.
The QR ETF will trade on the B3 with the ticker QBTC11, while the one from Hashdex will have HASH11 as its ticker. ETF HASH11 trading is predicted to start out this month, while QBTC11 ETF is predicted to start later in Q2 2021.
In the case of QR ETF, the index employed to calculate the worth of Bitcoin will be the CME [Chicago Commodities Exchange].
Fernando Carvalho, CEO of QR Capital, the firm of QR Asset, sees this movement as a crucial milestone for innovation within the Brasilia market. He explained:
“Our ETF, to be traded with the QBTC11 ticker, might be a milestone within the Brazilian market. The asset finishes up acting as a double hedge, as it might be a digital commodity and at an equivalent time, it’s traded in dollars on the global market. Its price is unrelated with other asset classes, which suggests that it’s increasingly being adopted by large managers and investors within diversified portfolios.”
Hashdex’s ETF will replicate the NCI [Nasdaq Crypto Index], an index developed by Nasdaq and Hashdex. Earlier in September last year, the Brazilian Hashdex got approval from the Bermuda regulator and alongside Nasdaq, approved the world’s first Bitcoin ETF – the Hashdex Nasdaq Cryptocurrency Index ETF.
Beyond Brazil, the sole country to approve its own Bitcoin ETFs is Canada.
Custody of Hashdex’s assets is formed by firms like BitGo, Coinbase, Fidelity, and Gemini, which are all mediated and controlled within the USA.