Brazil is a heavily populated South American nation that is usually in the news for its football craze. However, it seems that Brazilians have found a new passion in the field of cryptocurrencies. The central securities agency of Brazil, known as CVM, has recently approved the first Ethereum ETF in Latin America. The application for this ETF was filed by QR asset management.
Ethereum is not the first digital exchange-traded product in Brazil. A few months ago, the first Bitcoin ETF was also launched on the firm for the first time in Brazil. The Bitcoin ETF that is listed under the QBTC11 ticker on the Brazilian Stock Exchange B3 is also managed by QR. The Ethereum ETF will soon be listed under the QETH11 ticker as well.
Brazil’s New Ethereum ETF is Supported by Gemini
Breaking the news about QETH11 approval, the QR asset management team commented on Twitter that it is a great opportunity. The tweet by QR reads that it is a golden opportunity for investors to get exposure into Ethereum assisted by their preferred brokers and diversify their investment portfolio. The firm further explained that QETH11 would be using secure institutional custodial services provided by Gemini exchange.
Gemini is founded by the Winklevoss twins. They have been trying to get approval for a Bitcoin ETF in the United States; however, they have been turned down by SEC. QR management informed that the new ETF would be pegged with the CF Ether Reference Rate. This rate is also used by CME Inc., which is the largest crypto derivatives exchange in the world.
The economic condition of Brazil is not very stable. The tourism industry took a big hit during the COVID-19 pandemic. Under the current circumstances, Brazilian investors actively seek cryptocurrency derivatives as a store of value. On the same date when QR management issued the Ethereum ETF, another Brazilian financial institution called Hashdex launched a Bitcoin fund.
On the other hand, there is also an aggregate cryptocurrency ETF that offers investors a chance to get exposure to the compound functions of altcoins. The ETF is called HASH11. Noteworthy institutions like VanEck and Purpose still face challenges with SEC for getting their ETF applications approved in the United States.