Regulators from the CVM, the securities watchdog of Brazil, have approved the first Ethereum-based ETF in Latin America (Latam). The product, presented by blockchain investment company QR Asset, aims to simplify the task of getting Ether exposure for retail and institutional investors. It will be traded with the QETH11 ticker on the B3 stock exchange.
Brazil to Debut First Ethereum ETF in Latam
Brazil will be the first country in Latam that will trade an Ethereum-based ETF. The Brazilian securities regulator has approved the proposal of QR Asset, a blockchain investment firm, to offer an Ethereum ETF. The product, identified with the QETH11 ticker, will be traded on the B3 stock exchange in Sao Paolo.
The ETF’s objective is to provide an easy way for investors to put money behind Ethereum’s performance. QR Asset declared on Twitter that:
QETH11 becomes a simple, safe and regulated option for any investor to gain direct exposure to Ethereum through their preferred brokerage. Without worrying about registrations in exchanges, wallets or private keys.
This new ETF will be 100% backed by assets purchased in the market, and these assets will be guarded by Gemini, which will provide custody services.
QR Asset Amasses Two Crypto ETFs
QR Asset, the company bringing this new ETF to the market, already has a Bitcoin ETF on the market. The QBTC11 product launched last June, and it is trading on the B3 stock exchange too. With these offerings, QR Asset is now the lone provider of crypto ETF products in Brazil.
The securities regulator of the country has been very open to bringing these investment vehicles to the hands of potential investors. In contrast, its U.S. counterpart is reluctant to approve similar products. The SEC reviewed several Bitcoin ETF filings in the past with no luck for their proponents. In the last year, more than 6 proposals have been filed. But the SEC has not yet issued a decision on them.
Bitcoin-based ETFs allow institutional investors to enter the crypto market in a more regulated and mainstream way. However, even in the absence of ETF products in some regions, institutional investors are using Grayscale and Microstrategy as ways to work around the void, gaining indirect exposure to crypto assets via these companies.
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