Brazil’s Stock Exchange Will List Latin America's First Ethereum ETF
Brazilian stock exchange and asset management firm, QR Capital, has won approval from market regulators to list an Ethereum exchange-traded fund, less than a month after their BTC ETF began trading.
The Brazilian firm announced via a Twitter thread that Latin America's first Ethereum ETF had been authorized for listing by the Brazilian Securities Commission (CVM).
The product called QETH11 tracks the CME CF Ether-Dollar Reference Rate and will be offered by the country's B3 stock exchange, which is based in Sao Paulo.
With the introduction of the QETH11, institutions seeking to invest in the crypto industry will be given access to a less risky rendition of the market without having to bother with digital wallets or private keys.
“QETH11 becomes a simple, safe and regulated option for any investor to gain direct exposure to Ethereum...without worrying about registrations in exchanges, wallets, or private keys,” an excerpt from QR capital's statement reads.
ETF Gains Traction Worldwide
Since a Brazillian asset manager, Hashdex, launched the world’s first crypto exchange traded fund, other parts of the world have followed suit. In April, Canadian regulators gave the go-ahead to three applications for BTC and Ethereum ETFs filed by investment firms – Purpose Investments, Evolve, and CI Galaxy Digitally Capital Management (CI GAM). After the approval, another ETH ETF proposal quickly followed .
What does this mean? Why is it so important for the crypto industry?
A Bitcoin and Ethereum ETF is a significant validation in the financial ecosystem, and one that has a lot of turbulent history. Before 2021, this is to say before crypto teetered on the edge of mainstream adoption like it has this year, crypto ETFs struggled with approvals. 2013 was the year the first Bitcoin ETF was filed, only to be rejected. Then filed again. And rejected. Until Hashdex listed the world’s first Nasdaq crypto ETF in February this year.
Gemini, the company providing institutional custody for QR Capital's new Ethereum ETF is run by twins, Cameron and Tyler Winklevoss, who were the first to approach the United States Securities and Exchange Commission (SEC) for a Bitcoin ETF approval in the US in 2013.
Latin America Leads Crypto Adoption
Other than launching the world’s first crypto ETF, the Brazillain crypto industry has also thrived, alongside other Latin American countries who are increasingly opening their arms to the crypto market.
At the start of this year, Brazil’s largest BTC exchange was already said to have handled nearly $5 billion in digital currency on its platform. Coupled with the news of its increasing inclusion of Bitcoin ETFs on the country's stock exchange, Brazil joins the likes of El Salvador and Paraguay in their deliberate plans for a more crypto-inclined future.
Earlier in June El Salvador became the first country in the world to accept Bitcoin as a legal tender. Only soon after, the country's innovative leader announced that the development of a volcano-powered mining facility was underway, leading the charge for a green Bitcoin mining industry.
Meanwhile, a university in Paraguay recently became the first Latin American educational institution to accept tuition payment in digital currency.
An Ethereum ETF is another noteworthy development for ETH devotees, as the cryptocurrency continues its positive trend and preparation for new upgrades.
You can buy or exchange your preferred crypto for Ethereum (ETH) without any delay.