Brazil is set to host the world’s first spot XRP exchange-traded fund (ETF) following approval from the country’s securities regulator according to local media.
Hashdex, a leading crypto asset manager, has received authorization from the Brazilian Securities and Exchange Commission (CVM) to launch the fund [the HASHDEX NASDAQ XRP INDEX FUND], which is currently pre-operational.
Meanwhile, the ETF will be administered by Genial Investimentos, a Brazilian brokerage firm and Hashdex is yet to announce an official launch date.
XRP ETF to Launch First in Brazil: A Milestone for XRP Investment
The approval of the XRP ETF represents a significant development for both Brazil’s cryptocurrency market and global digital asset investments. With a market capitalization of $154 billion, XRP is currently the third-largest cryptocurrency, trailing only Bitcoin and Ethereum.
Notably, the ETF will allow investors to gain direct exposure to XRP through Brazil’s primary stock exchange, B3.
According to the report, Silvio Pegado, managing director of Ripple in Latin America, emphasized XRP’s suitability for an ETF and highlighted Brazil’s proactive stance on cryptocurrency regulation, noting that the CVM’s decision underscores the country’s commitment to fostering financial innovation.
“Following the approval of one of the first Bitcoin ETFs in 2021, the approval of the first XRP ETF by the CVM demonstrates Brazil’s visionary approach to crypto markets and financial advancements,” he added in the report.
Global Regulatory Landscape
While Brazil moves ahead with the launch of an XRP ETF, similar products in other jurisdictions are still under regulatory scrutiny. In the United States, proposals for XRP ETFs have yet to receive approval from the U.S. Securities and Exchange Commission (SEC).
The regulatory landscape remains complex, with the SEC historically classifying some digital assets as securities, creating challenges for ETF approvals.
Industry observers will be watching closely to see how the ETF performs once trading begins on B3.
As Hashdex finalizes the operational details, market participants await further announcements regarding the product’s launch date and structure.
