Gemini, a crypto exchange and custodialn, headquartered in the US and established by the two Winklevoss brothers, Tyler and Cameron, is set to deliver crypto custody services to BTG Pactual, one of the leading investment banks in Brazil, for the soon-to-be-launched Bitcoin fund. In a statement released yesterday, Gemini stated that its subsidiariess, Gemini Custody and Gemini Fund Solutions, were prepared to deliver customized services for the fund. The statement also described how both companies share philosophical ideologies.
BTG Pactual to become the first Bitcoin ETF in Brazil
BTG Pactual BTC 20 multi-market Investment Fund was licensed in March to become the first-ever Bitcoin fund in Brazil to enable investors to get exposure to Bitcoin. The fund commenced officially on April 5. BTG Pactual will invest 20% of its Asset Under Management (AUM) in Bitcoin, while Gemini takes the responsibility of securing the coins. The firm allocates 55% of its AUM to treasury bonds, 20% to bank deposits, and 5% to repo operations.
The fund is accessible to all BTG Pactual’s customers, and they can invest as low as $0.18 while they are charged 0.5% annual admin fees. In a translated text sighted by our correspondent, BTG Pactual says it focuses on “democratizing Bitcoin investment” by offering investors affordable and easily accessible products.
The company has recently urged investors to consider adding digital assets to their portfolios as one of the bank’s executives, Marcelo Flora, announced that the firm had started creating an instructional video series on Bitcoin and other cryptocurrencies.
She explained that the video would be in three episodes, which would comprise a course narrating the history of Bitcoin, institutional investors participating in Bitcoin, various ways of investing, how blockchain works, and its acceptance in the technological circle. The bank has been attempting different innovative crypto solutions. In 2019, it inaugurated real estate-based security tokens.
The Brazilian Stock Exchange approves 2 companies for Bitcoin ETF
On March 19, it was reported that the Brazilian Stock Exchange certified Itaú and BTG Pactual for crypto-based ETFs, a development that serves as a threshold in Latin America. The two approved ETFs are now available for trading on B3 or Brazil’s Stock Exchange.
One is QR Asset Management which specializes in the management of only Bitcoin, but to add other products in the near future. This is because the CVM and SEC are also a member of the Organization of Securities Commission. The Chicago Commodities Exchange will be the index used for calculating the Bitcoin’s price.
According to the Chief Executive Officer of QR Capital, which is also the holding company of QR Asset, this development serves as a critical landmark in the Brazilian economy.He added that the firm’s ETF serves as both a digital commoddity and a dollar-based currency in the global market.
The price, however, is not related to any other assets. It is an acceptable product used by prominent fund managers and institutional investors to diversify portfolios. Brazil is now the second country to allow the launch of Bitcoin ETF Canada was the first to approve Bitcoin ETF.