Brazil's SEC greenlights South America's first Ethereum ETF | Finbold

The Brazilian Securities Commission (CVM) has authorized the first exchange-traded fund (ETF) in Latin America that tracks the performance of Ethereum (ETH), according to the local media outlet Exame.

On Tuesday, July 13 several months after giving the go-ahead for a Bitcoin (BTC) ETF, Brazil’s watchdog approved a product that replicates the performance of the second-largest cryptocurrency, ETH, with QR Asset Management administering the fund.

The Ethereum ETF will be listed on the country’s stock exchange, B3, under the ticker QETH11. Moreover, it will follow the CME CF Ether Reference Rate, as used by the CME Group.

QR Asset Management stated:

“Expanding the horizon of diversification, QETH11 becomes a simple, safe, and regulated option for any investor to gain direct exposure to Ethereum through their preferred brokerage.”

Investors seek exposure to crypto assets

Interestingly, QR noted that the new ETF would employ “secure institutional custody” supplied by Gemini, a US exchange owned and run by the Winklevoss brothers. 

With QETH11, now Brazilian investors will be able to seek exposure to the two largest cryptocurrencies in the world with the purchase of ETFs, which are regulated and easily accessible.

This is the second cryptocurrency-focused exchange-traded fund CVM has approved. The country’s securities authority approved a Bitcoin ETF in March of this year. 

At the time, QR Capital CEO Fernando Carvalho stated that Bitcoin’s entry into the stock market represents a “historic moment for both the crypto and conventional financial markets.”

The situation further afield

Meanwhile, Canada has three operating BTC ETFs, all of which have been approved since the beginning of this year. Generally, the establishment of a Bitcoin ETF in Canada was expected to inspire neighboring nations to follow suit, but US regulators have yet to authorize a Bitcoin ETF.

Meanwhile, the US Securities and Exchange Commission (SEC) continues to reject most petitions while postponing VanEck and SkyBridge Capital’s most recent attempts.