Last week, Brazilian-based QR Capital received approval from the Brazilian Securities and Exchange Commission (CVM) to list an exchange-traded fund (ETF) composed solely of bitcoin (BTC), on the São Paulo-based B3 Stock Exchange. The ETF is the first 100 percent BTC exchange-traded fund to be approved anywhere in Latin America, and the fourth to be approved in the G-20 countries. The first three were approved last month in Canada.
The U.S. still does not allow crypto ETFs to trade on national stock exchanges.QR Capital Founder and CEO Fernando Carvalho QR Capital
The QR Capital ETF is slated to begin trading in June and, when it does, the ETF will be open to any Brazilian citizen, as well as international investors, who have an account with a broker dealer affiliated with B3, says QR Capital Founder and CEO Fernando Carvalho.
More than 4,000,000 Brazilians currently have access to the B3 stock exchange, says Carvalho. It is anticipated that the demand for the ETF will be staggering.
For the first time, Brazilian investors will be able to participate in a fully BTC-regulated investment vehicle. Unlike the U.S. and many other countries, crypto exchanges are not specifically regulated in Brazil.
Further, the QR Capital ETF is the only Brazilian investment fund that is invested 100 percent in BTC. All other investment funds open to small investors are constrained by Brazilian law to hold a maximum of 20 percent of crypto currencies.
Carvalho expects that demand will also come from international investors.
“The approval of the ETF in Brazil is significant,” says Rosine Kadamani, a Sao Paulo-based regulatory attorney and member of the Global Future Council of Cryptocurrencies at the World Economic Forum, “because now there will be another option for investing in bitcoin in a regulated environment.” It will be easy, says Kadamani, like purchasing shares of stock. Ea...