Brazil Approves Worlds First XRP Spot ETF, Boosting Crypto Adoption
- Brazil becomes the first country to approve an XRP spot ETF, boosting crypto investment.
- XRPs market cap reaches $152.96 billion, securing its position as the third-largest crypto.
- Hashdexs XRP ETF approval marks a major milestone for Brazils crypto market expansion.
Brazilian Securities and Exchange Commission (CVM) has authorized the launch of the nations first XRP exchange-traded fund (ETF). Brazil and the cryptocurrency sector achieved a major breakthrough with the CVM approval, which enabled Hashdex to launch the worlds first spot XRP ETF. Although the Brazilian Stock Exchange (B3) has not yet determined the launch date Hashdex stated it will share more information about this release soon.
Brazils Growing Commitment to Cryptocurrency Markets
The country shows leading innovation in cryptocurrency adoption which establishes it as the top crypto market leader in Latin Americas financial sector. The cryptocurrency market in Brazil handled transactions amounting to $90.3 billion between July 2023 and June 2024 to secure its position as the second-largest in Latin America. The massive population of the country, which exceeds 200 million, creates an ideal situation for cryptocurrency investments with a special focus on ETFs.
An ETF based on XRP is an ideal fit due to XRPs utility in the real world. Its institutional demand and established market cap have made it the top choice for investors seeking exposure to digital assets without dealing with the complexities associated with direct ownership. Ripples managing director for Latin America, Silvio Pegado, noted that the approval of this ETF could also help the country reinforce its vision of being a country open to crypto innovation and contribute to the country being a pioneer of crypto innovation that can help shape a larger world.
Global Expansion of XRP ETFs
The approval of Hashdexs XRP ETF in Brazil has caught the attention of the global markets, specifically the US, as multiple companies have filed for similar ETFs. Among the latter are XRP ETF applications from CoinShares, Bitwise, and 21Shares, which have been acknowledged by the U.S. Securities and Exchange Commission (SEC). The development of these XRP based investment products shows that more people are interested in investment products connected to XRP across the world.
However, Brazil is ahead of other jurisdictions as it has already approved the spot XRP ETF allowing investors to acquire a regulated investment product linked to a cryptocurrency. The aim is to empower retail and institutional investors with crypto exposure in Brazil and boost the main liquidity of XRP. Additionally, this could help propel the adoption of XRP in other regions where cryptocurrency has been embraced for cross-border payments for instance, through Ripples wide network.
Read more: https://www.tronweekly.com/brazil-approves-worlds-first-xrp-spot-etf/
Text source: TronWeekly
