Brazil Launches First Bitcoin ETF in Latin America

Brazil Launches First Bitcoin ETF in Latin America

Brazil’s regulatory authority Comissão de Valores Mobiliários (CVM) has approved the first Bitcoin (BTC) Exchange Traded Fund (ETF). This will be the first BTC ETF in Latin America.

QR Capital is offering the QBTC11 ETF and it will be listed on Brazil’s B3 Exchange. Also, in a Twitter post, QR Capital noted that the listing makes B3 the second exchange in the world to offer a 100% BTC ETF.

However, Brazil is a step behind Canada in offering a BTC ETF in America. To date, the North American country has launched three BTC ETFs. In fact, BTCC, the first Canadian BTC ETF, proved that there is a high demand for BTC-backed securities. As a result, the BTCC ETF traded $200 million worth of shares on its first day.

Also, as mainstream crypto adoption has grown there has been a marked demand for crypto-assets and securities. While assets like BTC and ETH allow investors to own them directly, however securities like ETFs allow exposure to such assets.

Due to the highly volatile nature of crypto, some investors are still reluctant to own them, but would still like to benefit from their high ROI. Thus, investing in an ETF allows such investors crypto exposure while hedging from high risk.

Meanwhile, the US has been a bit slow in crypto regulation despite calls to add clarity to the industry. In fact, the US SEC has 45 days to review what could be the country’s first BTC ETF. Further, the SEC has rejected all BTC ETF applications to date.

However, this has not stopped BTC adoption. For instance, traditional finance giant Morgan Stanley (NYSE:MS) geared to launch three BTC funds as soon as April.

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