Although the proposals in the United States regarding a possible Bitcoin exchange-traded fund (ETF) have previously struggled to gain any kind of approval, which would need to be given by the country’s SEC, another nation has managed to be successful by launching its own ETF. Brazil is the country in question, and it just made history by not only launching the 1st Ether ETF but also being the only nation in all of Latin America to do so.
Brazil’s CVM, which is its version of the U.S SEC, granted the approval for the aforementioned Ether ETF yesterday, and this shall be managed via QR Asset Management. It is set to be displayed as QETH11.
Brazil makes history
There had been an ETF made earlier, though, which should be highlighted. The 1st BTC ETF, known as QBTC11, had been launched through QR on Brazil’s stock exchange, B3. A tweet had been posted recently which stated that as Latin America looks toward exploring different options for the continued expansion of diversification, a regulated, easy to use, and most importantly safe option is now available through QETH11. Investors may thus gain additional exposure to the world’s 2nd largest crypto by market cap, Ethereum, via the preferred brokerage.
Moreover, the ETF shall utilize the Gemini exchange platform’s ‘secure institutional custody’ feature, thereby further putting the investors’ minds at ease. Interestingly enough, the Winklevoss twins (who had founded Gemini together in 2015) have repeatedly struggled to introduce a BTC ETF for the United States, despite numerous attempts to do so.
Also, the QETH11 shall be following the Ethereum Index that is often utilized by the world’s biggest derivatives exchange, the CME Group. It shall additionally be administered via Vortx, a trusted service provider.
As the situation develops, the argument could be made that Brazil is adopting a much more diverse, open-minded, and pro-cryptocurrency approach. This is also proven by the increasing demand for cryptocurrency derivatives. The primary reason as to why this approach has been taken is because investors are actively searching for alternative sources of income as Brazil’s economy is struggling. Digital assets are therefore seen as a sort of safe haven for investors.
At the moment, only Canada is currently providing investment products that are similar to the ones being offered by Brazil. The U.S, however, has consistently remained hostile towards cryptocurrency ETFs, even though the desire for an exchange-traded fund clearly exists among American investors.