The Brazilian Securities Commission (CVM) has authorized the first exchange-traded fund (ETF) in Latin America to track the performance of Ethereum (ETH), according to local media outlet Exame.
Ethereum Relieves Investors
On Tuesday, July 13, a few months after allowing the Bitcoin (BTC) ETF, the Brazilian supervisory authority granted ETF approval for the second largest cryptocurrency, ETH, with QR Asset Management, which manages the fund. In the statement made on the subject, it was stated:
“With the new regulation, it becomes a simple, secure and regulated option for any investor to invest directly in Ethereum.”
Interestingly, QR notes that the new ETF will use the “secure corporate oversight” procedure provided by US exchange Gemini, owned and operated by the Winklevoss brothers.
With the new regulation, Brazilian investors will now have the opportunity to invest in the world’s two largest cryptocurrencies by purchasing regulated and easily accessible ETFs.
After the Bitcoin ETF adopted in recent months, QR Capital CEO Fernando Carvalho stated that the introduction of Bitcoin to the stock market is “a historic moment for both the crypto and traditional financial markets.”
Other ETF Developments
There are three operating BTC ETFs approved in Canada since the beginning of this year. Overall, the establishment of a Bitcoin ETF in Canada was expected to inspire neighboring countries to do the same, but US regulators have yet to allow a Bitcoin ETF.
Meanwhile, the U.S. Securities and Exchange Commission (SEC) continues to reject most petitions, postponing the latest attempts by VanEck and SkyBridge Capital.
An ETF is a basket of securities whose shares are sold on an exchange. They combine the characteristics and potential benefits of stocks, mutual funds or bonds.
Like individual stocks, ETF shares are traded at prices that change throughout the day based on supply and demand. Like mutual fund shares, ETF shares represent partial ownership of a portfolio put together by professional managers. EFT is defined as an exchange-traded fund.