The Brazilian Securities Commission (CVM) has approved South America’s first Ethereum-based exchange-traded fund to be managed by QR Asset Management. The Ethereum ETF will receive the ticker QETH11. It will be listed on the Brazilian B3 Stock Exchange (formerly BM & FBOVESPA). QR Asset Management stressed that they will use the services of the American cryptocurrency exchange Gemini. Which owned by the Winklevoss brothers, to store the cryptocurrency.
This is the second cryptocurrency ETF approved by CVM. In June, the regulator granted permission to QR Asset Management to create a Bitcoin ETF.
That is, just a few months after the Bitcoin ETF was approved, a Brazilian observer did the same for a product tracking the performance of the second largest cryptocurrency, ETH. At the time of preparing the text, its rate is $ 1,583. Over the past 24 hours, the asset has lost 4.4%. And over the last 7 days, it has lost 12% of its value.
This gave Brazilian investors access to the world’s two largest and most valuable digital assets in a regulated, simple and secure manner.
There is no longer any need to register on exchanges, create private keys, or worry about secure storage. Cause the fund has institutional storage in cold storage provided by Gemini.
Note that QR Asset Management is part of the QR Capital group. The company manages digital assets worth 594 million reais (approximately $ 115 million). The company has over 20,000 clients.
ETF approval by other countries
Note that the world’s first cryptocurrency ETF approved this year by the Ontario Securities Commission.
The entire industry is eagerly awaiting the approval of American regulators for the Bitcoin ETF. But the SEC is in no rush, over and over again rejecting more and more new applications. Currently, US SEC is considering applications for the creation of Bitcoin ETFs from ARK Invest, One River, VanEck and Fidelity. The US regulator has yet to approve a single cryptocurrency exchange-traded fund.
In April of this year, the Canadian regulator approved the launch of three Ethereum-based exchange-traded funds at once – Purpose Ether ETF, CI Galaxy Ethereum ETF and Evolves Ether ETF. The American crypto exchange Gemini also involved in storing the cryptocurrency for these funds.
Consequently, Brazil became the second country in the world to have Ethereum ETFs registered. Canada is ahead of the South American country.
Thus, when it comes to ETF-Ethereum, investors will soon have a wide variety of options.
Why exchange-traded fund?
ETFs are the ideal tool for investors looking to get the most out of their investments. The fact is that by investing in ETFs, you can buy a whole basket of assets – and all this for relatively little money. After all, if you duplicate the index on your account on your own, you will have to have significant capital, and at the same time pay a huge amount of commission.
Advantages of ETFs: high liquidity, low cost, ease of management, low costs, but the most important advantage of ETFs is the growing value of exchange-traded funds at a distance.