Brazil just made history by launching the very first XRP spot exchange-traded fund (ETF)! This opens up a new way for investors to get in on the cryptocurrency action.
Hashdex Makes it Happen
The asset manager Hashdex listed the XRP ETF on Brazil’s B3 stock exchange on April 25th. It’s called XRPH11 and tracks XRP’s price using the Nasdaq XRP Reference Price Index. Brazil’s Securities and Exchange Commission (CVM) gave the green light back in February.
The fund invests at least 95% of its assets in XRP, also using futures contracts and other securities linked to the Nasdaq index. Genial Investimentos manages the fund, and Genial Bank SA acts as custodian. The annual cost to investors is a manageable 0.8%. This is Hashdex’s ninth crypto ETF on the B3 exchange – they already offer ETFs for Bitcoin, Ethereum, and Solana.
The US is Playing Catch-Up
This Brazilian launch puts pressure on the US. Despite XRP being created by a US company and having a market value over $120 billion (third largest crypto excluding stablecoins), there’s still no spot XRP ETF available. However, things might be changing. Ripple’s recent progress with the SEC, along with the previous administration’s goal of making the US the “crypto capital of the world,” has created a more positive outlook for crypto regulation.
US Approval on the Horizon?
Several big names like Grayscale and Franklin Templeton have applied for XRP spot ETFs in the US. Analysts predict a 73% chance of approval. While the US did see a leveraged XRP ETF launch recently, a spot ETF is still pending. Brazil’s lead in this area will likely increase the pressure on US regulators to approve similar investment options for American investors.
A Big Step for Crypto
Hashdex’s move is a huge step for bringing crypto into mainstream finance. Brazil is definitely setting the pace for crypto ETF adoption.