Brazilian SEC leads South America’s first Ethereum ETF

The Brazilian Securities and Exchange Commission (CVM) approved the first Ethereum Exchange Traded Fund (ETF) in Latin America. The new asset class, which tracks the performance of the second largest crypto giant, is managed by QR Asset Management. The latter is the largest crypto asset management company based in Latin America.

Brazilian SEC leads South America’s first Ethereum ETF

The Ethereum ETF will soon be listed on the B3 national exchange under the code QETH11. In addition, the asset will follow the CME CF Ether-Dollar Reference Rate (ETHUSD-RR) used by the CME Group.

When it comes to managing QR content, it means:

QETH11 expands the diversification horizon and becomes an easy, safe and regulated option for any investor to get direct exposure to Ethereum through their preferred broker.

Additionally, the crypto asset manager has stated that the new ETF will use “secure institutional custody”. The custodian will be Gemini Trust Company LLC – a US digital currency exchange owned and operated by the Winklevoss twins.

Reportedly, this is the second crypto ETF that CVM has approved. The first is the Bitcoin ETF, which was approved by the regulator in March.

Fernando Carvalho, CEO of QR Capital, stated that this is “a historic moment for both crypto markets and conventional financial markets”.

Brazilian investors are now getting exposure to the two largest cryptocurrencies through the purchase of managed and easily accessible ETFs.

Canada now currently has three Bitcoin ETFs, all of which were approved this year. These events inspired neighboring countries to follow Canada’s path. However, efforts to launch a Bitcoin ETF in the US have proven to be in vain. The Securities and Exchange Commission (SEC) continues to reject ETF proposals, citing the potential for fraud and manipulation. The regulator remains skeptical and uncertain about the safety of investors when using such an asset.

Some of the declined Bitcoin ETFs in the US include the Winklevoss Bitcoin ETF, Huntington Asset Advisors ETF, and Precidian Investments ETF. More recently, the watchdog has postponed its decision on VanEck’s Bitcoin ETF twice, 45 days each time. The next conviction is scheduled for this month. In addition, the regulatory authority has extended the decision-making process on the Bitcoin ETFs Kryptoin and SkyBridge Capital until July 27 and August 25, 2021, respectively.

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