Brazil Pioneers First XRP ETF, Sets Global Precedent

Brazils CVM has approved the world's first XRP-based ETF, managed by Hashdex, marking a significant step in institutional crypto adoption amid growing interest in XRP investment products.

Regulatory Milestone for XRP ETF

Brazils Securities and Exchange Commission (CVM) has approved the worlds first exchange-traded fund (ETF) that directly holds XRP. The ETF, officially named the Hashdex Nasdaq XRP Index Fund, will be managed by Hashdex and listed on the countrys primary stock exchange, B3. The fund is currently in its pre-operational phase, with an official trading date yet to be announced. Brazilian brokerage firm Genial Investimentos has been appointed as the funds administrator.

Ripple Executive Applauds Brazils Visionary Stance

Silvio Pegado, Managing Director of Ripple in Latin America, highlighted XRPs real-world utility and increasing institutional demand as key factors behind its suitability for an ETF.

Pegado stated,

The approval of the first XRP ETF by the CVM demonstrates Brazils visionary approach to crypto markets and financial advancements. Through regulation and public consultations, Brazil continues to position itself as a country open to innovation, and we expect it to be central to more pioneering advancements in the crypto sector in the future.

Brazils Expanding Crypto Market

The approval of the XRP ETF comes at a time of significant growth in Brazils crypto sector. A Chainalysis report from October 2024 revealed that between July 2023 and June 2024, Brazils crypto users deposited approximately $90 billion in digital assets. Stablecoins made up 59.8% of this volume, with Bitcoin, Ether, and altcoins comprising the remainder. This surge in adoption has positioned Brazil as a key player in the global cryptocurrency landscape.

Implications for Global Crypto Markets

Brazils decision to greenlight an XRP ETF could set a precedent for other jurisdictions considering similar offerings. The move comes amid a wave of spot XRP ETF applications in the United States, where firms like 21Shares, Bitwise, Grayscale, and CoinShares have submitted filings. The U.S. Securities and Exchange Commission (SEC) has recently acknowledged these applications, along with proposals for ETFs based on other altcoins such as Solana and Litecoin.

The evolving regulatory stance in the U.S. has been influenced by the reelection of crypto-friendly President Donald Trump. His administration has pledged to bring greater clarity to crypto regulations, with the SECs crypto task force focusing on distinguishing which cryptocurrencies are not considered securities.

Growing Institutional Interest in XRP

XRP remains one of the largest cryptocurrencies by market capitalization, ranking third globally with a market cap of $151 billion, trailing only Bitcoin and Ethereum. The introduction of an XRP ETF in Brazil signals growing institutional interest and could pave the way for broader adoption of XRP-based investment products worldwide.

As Brazil continues to embrace regulatory advancements in the crypto sector, the launch of the Hashdex Nasdaq XRP Index Fund may serve as a model for future crypto-based ETFs in other markets.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Text source: Crypto Daily™

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