While Bitcoin ETF products are growing at a fast pace in Canada, their emergence in Brazil and Dubai is a testament to the openmindedness of regulators, except those in America.
South American giant Brazil and MiddleEastern nation, Dubai have both floated their first Bitcoin Exchange Traded Fund (ETF) products. As reported by Decrypt, the Brazilian ETF, dubbed the Bitcoin ETF QBTC11 was launched by QR Capital after the country’s regulators greenlighted the product back in March. QBTC11 has commenced trading on the Brazilian Stock Exchange (B3).
The Dubai Bitcoin ETF was floated by the Canadian asset management firm 3iQ. The approval for this was given back in April and has now commenced trading on the Nasdaq Dubai bourse. The advent of Bitcoin and crypto ETFs is further mirroring the rare opportunities the traditional markets offer, which the digital asset ecosystem is now trying to tag along with.
The debut of Bitcoin in major stock markets has been described by QR Capital CEO Fernando Carvalho as a “historic moment for the cryptomarket and the conventional financial market as well,” he said adding, “We can see the market maturing in its search for safer and simpler Bitcoin exposure options. Our Bitcoin ETF is a landmark for both financial and cryptomarkets, once it is the convergence point between them. The Brazilian investor has now a regulated and robust choice to buy bitcoin.”
Crypto ETFs are a way for investors to indirectly acquire these emerging digital assets in a regulated way. It entails the purchase of shares which tracks the behavior of the underlying assets. ETFs are more of a financial tool that is largely applied in Real Estate, in commodities trading, and now, cryptocurrencies in general. Bitcoin ETFs are ideal for conservative investors, or those who want partial exposures to crypto, with the backing of the law.
While Brazil and Dubai ETF Flies, US Regulators Still Plays Cautious
The advent of Bitcoin and general crypto-related ETFs was championed by Canada, Switzerland, and Germany. While these new products are growing at a fast pace in Canada, their emergence in Brazil and Dubai is a testament to the openmindedness of regulators, except those in America.
At present, there are about 9 Bitcoin ETF applications being filed for consideration with the Securities and Exchange Commission (SEC). The market regulator has delayed the decision on each of the applications, as it remains wary of the potential price volatilities and incidence of broad market manipulations.
The expectations for a Bitcoin ETF to be launched in the US this year are high. While new SEC Chairman, Gary Gensler remains the key figure capable of helping to achieve this feat, market proponents believe the desire to dominate or be relevant in financial innovations will eventually stir the regulator to approve the ETF product this year.
Amongst other things, a Bitcoin ETF will benefit the cryptocurrency ecosystem as new investors embracing the products in Brazil and Dubai will help push the asset class onto mainstream adoption.
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