Brazil’s Securities and Exchange Commission approves two crypto ETFs

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Updated on Jun 17, 2024

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The ETFs will trade on Brazil’s Stock Exchange under the ticker symbols QBTC11 and HASH11.
HASH11 is set to start trading later this month and QBTC11’s trading will go live in Q2 this year.
QBTC11’s manager believes that the ETF’s launch in Brazil will open a gateway for launch in the US.

The Brazilian Securities and Exchange Commission (CVM) has approved two crypto exchange-traded funds (ETFs). A report unveiled this news on March 20, noting that the first ETF comprised 100% Bitcoin (BTC). The second comprises a basket of five cryptocurrencies – Ethereum (ETH), Stellar (XLM), Litecoin (LTC), Chainlink (LINK), and Bitcoin Cash (BCH). Reportedly, these ETFs are the first to be approved in Latin America and they will be traded on Brazil’s Stock Exchange B3 under the ticker symbols QBTC11 and HASH11.

According to the report, the BTC only ETF is managed by QR Asset Management. The ETF is set to start trading in Q2 2021, and it will leverage the Chicago Commodities Exchange index to calculate BTC’s price. QR Asset Management believes that the launch of the ETF in Brazil will pave the way for the rollout of a similar product in the US. QR Asset Management’s beliefs are based on the fact that the CVM and the Securities Exchange Commission (SEC) are both members of the International Organization of Securities Commissions (IOSCO).

Hashdex will manage the second ETF and the ETF has already acquired the support of two leading Brazil Banks. HASH11 will replicate the Nasdaq Crypto Index (NCI), which was co-developed by Nasdaq and Hashdex. Reportedly, Itaú and BTG Pactual announced that they would offer their clients access to the ETF once it goes live later this month.

Opening Latin America to crypto

Per the CEO of QR Asset Management’s holding firm, Fernando Carvalho, the approval of QBTC11 is a milestone in their country’s market. He believes that the asset is taking place in the portfolios of giant investors since its price is not related to other assets.

Echoing Carvalho’s sentiments, Marcelo Flora, BTG Pactual Digital’s head said that the launch of HASH11 would offer the bank’s customers a real chance to invest in Bitcoin in a simple, safe, and practical way. He went on to tout the bank’s flexibility and adaptability, noting that it would become the first Brazilian bank to offer crypto.