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SEC of Brazil Approves First Ethereum ETF in Latin America

UTC by Oluwapelumi Adejumo · 3 min read
SEC of Brazil Approves First Ethereum ETF in Latin America
Photo: Depositphotos

In another interesting development in Brazil, an asset management firm based in the country, Hashdex, is planning to launch a Bitcoin ETF whose goal is to combat the environmental concerns that come with Bitcoin mining.

Brazil does not appear to be dropping the ball when it comes to groundbreaking decisions in the crypto space. The Latin American country’s Securities Commission (CVM) has approved the first Ethereum Exchange Traded Funds (ETF) in the region. This news about Ethereum comes several months after Brazil was also the first in Latin America to approve a Bitcoin ETF.

According to available information, QR Asset Management would be managing the ETF. It is expected that the new ETF would have a ticker QETH11 and it would also be appearing on the B3 exchange of the country. It was also revealed that it would be using the CME CF Ether Reference Rate, used by the CME Group.

Per QR Asset Management, investing in the ETF would allow investors to have access to a stable and safe exposure to the second largest crypto asset by market cap. The asset management wrote “expanding the horizen of diversification, QETH11 becomes a simple, safe, and regulated option for any investor to gain direct exposure to Ethereum through their preferred brokerage.”

An interesting aspect of the new ETF is that it would be using the “secure institutional custody” services offered by US-based crypto exchange Gemini.

While the United States has refused to approve applications for a Bitcoin ETF within the country, Brazil alongside Canada have approved several exchanges. In Canada alone, there are three operational ETFs within the country. One of them, Purpose Bitcoin ETF, has enjoyed a high level of acceptance and adoption in the space as it has seen an enormous amount of growth within the short period of its launch.

Not Only Ethereum: Hashdex Plans a Bitcoin ETF to Combat Mining Environmental Concerns in Brazil

In another interesting development in Brazil, an asset management firm based in the country, Hashdex, is planning to launch a Bitcoin ETF whose goal is to combat the environmental concerns that come with Bitcoin mining.

According to the firm, the exchange traded fund would be using part of its management fees to purchase carbon credit that would be used to offset the carbon produced by the BTC held in the fund.

Roberta Antunes, chief of growth at Hashdex, revealed that the crypto product would be listed on the Brazilian stock exchange under the ticker BITH11. Investors would have until the end of this month to purchase their first shares in the ETF.

Antunes also mentioned that Hashdex has the support of the Crypto Carbon Ratings Institute (CCRI) to set up this product. The institute would produce a yearly report that would contain the calculations and estimates of energy consumption and carbon emissions of the units of Bitcoin held by the ETF.

Altcoin News, Cryptocurrency news, Ethereum News, News
Oluwapelumi Adejumo

Oluwapelumi is a believer in the transformative power Bitcoin and Blockchain industry holds. He is interested in sharing knowledge and ideas. When he is not writing, he is looking to meet new people and trying out new things.

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