This week, the Brazilian Securities and Exchange Commission (CVM) approved two cryptocurrency ETFs, one consisting of 100% bitcoin and the other consisting of five cryptocurrencies and bitcoin (BTC).
For QR Asset Management, the only Bitcoin ETF director, the manufacturer can accelerate the launch of a similar product in the United States, given that CVM, as well as the Securities and Exchange Commission, or SEC, is part of the International Securities Organization. Commissions, or IOSCO.
Both will be listed on the Brazilian stock exchange ETF, or B3. According to the Brazil Journal, two major banks in the country, Itaú and BTG Pactual, have announced that they are offering Hashdex ETFs to their customers.
The QR ETF will trade on B3 with the QBTC11 band, while the indicator from Hashdex will be HASH11 as a bar. ETF HASH11 is expected to start trading this month and ETF QBTC11 in the second quarter of 2021.
For QR ETFs, the indicator used to calculate the price of Bitcoin will be CME.
Fernando Carvallo, CEO of QR Capital, the holding company of QR Asset, sees this movement as an important milestone for innovation in the Brazilian capital market. He told the Cointelegraph internally:
“Our ETF, which will be traded using the QBTC11 index, is a milestone in the Brazilian market. The asset eventually becomes a double hedge because it is a digital commodity and at the same time it is traded in dollars in the global market. The price is not related to other asset classes, which means that it is increasingly used by senior managers and investors in a diversified portfolio. ”
The Hashdex ETF will copy the Nasdaq Crypto Index (NCI), an index developed by Nasdaq and Hashdex. In September 2020, Brazilian Hashdex received government approval in Bermuda and agreed with Nasdaq the world’s first Bitcoin ETF – Hashdex Nasdaq Crypto ETF.
Outside of Brazil, Canada is the only country to approve its Bitcoin ETF.
NCI consists of six cryptocurrencies: Bitcoin, Ethereum (ETH), Stellar (XLM), Litecoin (LTC), Bitcoin Cash (BCH) and Chainlink (LINK), which are balanced every three months.
Hashdex assets are held by companies such as BitGo, Coinbase, Fidelity and Gemini, which are brokered and regulated in the USA.