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Brazil became second country which approved Bitcoin-ETF

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Physical version of Bitcoin (new virtual money) and Brazil Flag. Conceptual image for investors in cryptocurrency and Blockchain Technology in Brazil.

The Securities and Exchange Commission of Brazil, better known today as CVM, approved the first Bitcoin-ETF in the Latin American region. QR Asset Management applied for its launch. Thus, Brazil became the second country in the world to provide support and approval for the Bitcoin ETF. The very first targeted Bitcoin-ETF launched in February this year in Canada. Today, the value of his capital has exceeded the 1 billion Canadian dollars mark.

The QR Capital team informs that the fund has become the fourth such regulated investment product based on bitcoin in the world. The previous three have been launched in Canada since early 2021: Purpose Bitcoin ETF, Evolve Bitcoin ETF, and CI Galaxy Bitcoin ETF.

B3 will be the second stock exchange to offer such an instrument. The Bitcoin-ETF of QR Capital will trade under the ticker QBTC11. ETF QBTC11 trading will begin in the second quarter of 2021.

Innovation in the Brazilian market

Fernando Carvalho, CEO of QR Capital, sees this movement as an important milestone for innovation in the Brazilian capital market. He also said: “Our ETF, will trade with the QBTC11 ticker, is a milestone in the Brazilian market. The asset ends up acting as a double hedge, as it’s a digital commodity and at the same time, it’s trade in dollars on the world market. Its price is unrelated with other asset classes. This means that it is increasingly being adopted by large managers and investors within diversified portfolios”.

ETFs Provide Confidence

QR Capital believes that unlike what happened in 2017, when thousands of investors bought cryptocurrencies on their own, in the next upward cycles, regulated funds will be the main investment channel providing safe and regulated access to the sector.

The QR team believes that listing of the new Bitcoin-ETF will protect crypto investors. Allowing them even more legal confidence to access bitcoins in the “most professional way.”

Industry participants say the Bitcoin-ETF will allow retail traders to invest in a regulated Bitcoin product without having to invest directly in cryptocurrency. Institutions may also be more inclined to invest in Bitcoin-ETFs than cryptocurrencies for compliance or reporting reasons.

According to the website, QR Asset Management manages $ 77 million in crypto assets and serves over 10,000 clients in Latin America.

Recognition of Bitcoin-ETF in the USA

Large American companies have previously presented their proposals to the SEC. However, the SEC rejected all applications, citing extreme volatility and possible market manipulation.

Many experts are confident that the CVM decision can accelerate the approval of a Bitcoin-ETF launch in the US. The Brazilian agency, like the SEC, is a member of IOSCO, which coordinates industry regulation.

The US Securities and Exchange Commission is currently considering applications for launching crypto funds from WisdomTree Investments and VanEck Associates Corp., as well as from NYDIG Asset Management and Valkyrie Digital Assets.

Bitcoin-ETFs considered unlikely a few months ago. But under the new leadership of the SEC with Gary Gensler, its new chairman, things could be different. Gary Gensler has recently made a comment in support of blockchain technology. When it comes to cryptocurrencies and their integration into economy, Gensler believes that digital assets can have a positive effect.  Moreover, it can change the attitude of citizens towards payments and finance. On the other hand, Gensler also calls for tools and laws that can protect investors from the inherent volatility.

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