Brazil SEC spearheads South America’s first Ethereum ETF

  • The Ethereum ETF will soon be listed on the Brazil stock exchange, B3, under the ticker QETH11.
  • Ethereum ETF is the second CVM-approved crypto ETF in Brazil, with the Bitcoin ETF having been rubber-stamped in March.

Brazilian Securities and Exchanges Commission (CVM), has authorized the very first Ethereum exchange-traded fund (ETF) in Latin America. The new asset class, which replicates the second-largest crypto giant’s performance, will be administered by QR Asset Management. The latter is the largest cryptocurrency asset manager based in Latin America.

The Ethereum ETF will soon be listed on the nation’s stock exchange, B3, under the ticker QETH11. In addition, the asset will follow the CME CF Ether-Dollar Reference Rate (ETHUSD-RR), 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.

Additionally, the crypto asset manager pointed out that the new ETF would utilize “secure institutional custody”. The custodian will be Gemini Trust Company LLC – a US digital currency exchange owned and run by the Winklevoss twins.

Ethereum ETF and crypto market

Reportedly, this is the second cryptocurrency ETF that the CVM has approved. The first was Bitcoin ETF, which the regulator approved in March.

Fernando Carvalho, CEO of QR Capital noted this as a “historic moment for both the crypto and conventional financial markets.”

Brazilian investors now have exposure to the two largest cryptocurrencies, through the purchase of regulated and easily accessible ETFs.

Meanwhile, Canada currently prides itself on three Bitcoin ETFs, all of which were approved this year. These events have inspired neighbouring nations to follow Canada’s path. However, efforts towards introducing Bitcoin ETFs in the US have proved futile. The Securities and Exchanges Commission (SEC) continues to reject ETF proposals, citing the likelihood of fraudulent and manipulative practices. The regulator remains skeptical and uncertain of investors’ safety should they take up such an asset.

Bitcoin ETFs rejected in the U.S. include the Winklevoss Bitcoin ETF, Huntington Asset Advisors ETF, and Precidian Investments ETF. More recently, the watchdog postponed its ruling on VanEck’s Bitcoin ETF twice, by 45 days each time. The next judgment is scheduled for this month. Additionally, the regulator extended decision-making on Kryptoin and SkyBridge Capital Bitcoin ETF to July 27 and August 25, 2021, respectively.

Ethereum (Eth) Market Performance

At press time, Ethereum is trading at $1,900, having shed off 4 percent in 24-hours, according to our data. During this period also, its highs and lows have been $2,038 and $1,857. The digital asset has gained a staggering 700 percent in one year.

Nevertheless, Ethereum’s value has been cut by more than half, as the asset had achieved an all-time high of $4,165 in early May. That said, there is a lot of hype and anticipation of an Ethereum bull run this year. Some of the crypto enthusiasts expect its price to rise to $2,500-$3,000, or beyond by December 2021.

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