There are now four cryptocurrency-related ETFs available on the country’s stock market. Brazil is rapidly moving towards new investment opportunities related to digital assets. This week the country launched a new Bitcoin ETF based on green technology.
BITH11 is a new exchange traded fund (ETF), based on Hashdex Asset Management, specialising in alternative investments. It is the second ETF offering 100% exposure to Bitcoin in Brazil, competing with QR CME CF Bitcoin Reference Rate (QBTC11).
A different offer from Hashdex (from QR Assets) is that it aims to neutralise the carbon footprint of Bitcoin investments.
The so-called First Green Bitcoin ETF in Brazil will rely on audits by the German Cryptocurrency Rating Institute (CCRI) to evaluate the environmental impact of BITH11 investments, and will invest 0.15% of its liquid assets annually in carbon credits and green technologies.
Rogerio Santana, the director of B3 (Brazil’s main stock exchange), pointed out the importance of the initiative. He noted that in addition to ensuring compliance with the country’s legal regulations, BITH11 contributes to a positive ecosystem-wide impact. He is also proud that it is one of the most broad-based cryptocurrency investment offerings in the entire region.
“The new ETF offers investors exposure to the variations of the world’s leading digital asset, with all its growth potential and store of value, in a regulated, secure and sustainable manner … With the introduction of this ETF, we will also increase B3’s range of ESG products available to the market.”
This will be the second ETF managed by Hashdex. The first, the Hashdex Nasdaq Crypto Index (HASH11) follows the performance of the Nasdaq Crypto Index (NCI), which tracks a basket of cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Chainlink (LINK), Bitcoin Cash (BCH) and Stellar Lumens (XLM).
In addition to this announcement, just a few days ago the first 100% Ethereum ETF — QR CME CF Ether Reference Rate (QETH11) from QR Assets — was also confirmed.
Consequently, Hashdex and QR Assets control the Brazilian cryptocurrency ETF market. The two investment firms also rank Brazil high among the countries with the most diverse exposure to cryptocurrency ETFs.
The Brazilian regulatory system for crypto investments is rather strict, but this has not prevented it from preparing for large-scale regulatory reform, particularly thanks to its regulatory sandbox. In addition, the growing ecosystem of service providers has caused confidence in the entire crypto industry. For example, services such as Z.ro Bank, Alter and Uzzo Pay allow users to have a free bank account with the possibility to buy and sell Bitcoin at market prices. Users can also pay with prepaid credit cards that use money from their fiat accounts.
There is the undeniable fact that cryptocurrency exchanges have tremendously gained in popularity. Despite recent staff changes, Binance remains the leader on the market. Brazilian exchanges are stepping up their game, however, with the introduction of the country’s first green Bitcoin ETF.
Quand j’ai commencé dans les cryptos il y a 3 ans, il y avait plus de 95% d’hommes et encore très peu de femmes, bon ça n'a toujours pas beaucoup changé, mais les choses bougent et je suis fière de representer les femmes dans ce milieu très technique qui est passionnant et plein d'avenir.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
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