Brazil approves the world’s first XRP spot ETF

Brazil’s Securities and Exchange Commission (CVM) just approject the world’s first XRP spot exchange-traded fund (ETF) product.

According to a recent report by local crypto news outlet Portal Do Bitcoin, the ETF in question was created by asset manager Hashdex and will allow regulated investors to access exposure to XRP without dealing with crypto assets directly. The new XRP spot ETF will be traded on Brazil’s B3 stock exchange.

The news follows United States-based Ethereum (ETH) spot ETFs seeing $393 million worth of inflows this month. The world’s first cryptocurrency, Bitcoin (BTC), on the other hand, saw a net outflow of $376 million over the same timespan, but this is partly attributed to carry trading, a strategy that consists of acquiring spot ETH ETFs and shorting the Chicago Mercantile Exchange’s (CME) Ethereum futures at the same time.

The financial product in question, officially named the Hashdex Nasdaq XRP Index Fund, was first created in late February and is currently in its pre-operational phase. Brazilian brokerage firm Genial Investimentos was appointed as the fund’s administrator.

Details concerning the ETF contracts are so far sparse, with information concerning its structure and trading mechanics yet to be disclosed. Furthermore, Hashdex confirmed that the fund was approved but provided no exact date for its launch.

The news follows Ripple CEO, Brad Garlinghouse, sharing his belief that the U.S. government’s plan to stockpile digital assets should stretch beyond Bitcoin to include other crypto coins such as his company’s XRP at the end of January. He wrote at the time:

“The crypto industry has a real shot, here and now, to achieve the many goals we have in common, IF we work together instead of tearing each other down. This is not, and never will be, a zero-sum game. […]

If a govt digital asset reserve is created – I believe it should be representative of the industry, not just one token (whether it be BTC, XRP or anything else).”

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