South America’s first 100% Bitcoin-based ETF opens for trading in Brazil.
Latin America’s largest asset management firm, QR Capital from Brazil, is launching the continent’s first 100 per cent bitcoin-focused ETF. The ETF will launch on the Brazilian Stock Exchange on June 23, with access to 100 per cent Bitcoin.
The new Bitcoin ETF will use the CME CF Bitcoin Reference Rate, the index that CME also uses for Bitcoin futures contracts. In a statement from QR Capital, the new Bitcoin ETF will help investors who are unable to invest in 100 per cent BTC-backed funds under the new rules of the Brazilian Securities and Exchange Commission (CVM):
“QBTC11 allows investors to hedge against currency risk and surrender to a liquid dollarized asset. The largest cryptocurrency, Bitcoin, has a daily volume of more than 100 billion Brazilian reals, or in other words, it has 4 times the volume of the real. Bitcoin also helps diversify their portfolios.”
The first 100% Bitcoin focused ETF
QBTC11 will be the second Bitcoin ETF listed on the stock market in Brazil. The first product was HASH11, which offered its investors a basket of crypto assets. QBTC11, on the other hand, will be a 100% bitcoin-focused ETF and will be the first in the continent in this sense. The Bitcoin ETF will be released on June 23.
Both South and North America Increase Bitcoin Adoption
While South America’s first 100% bitcoin-focused ETF was opened for investment in July, Canada made the first move of the entire continent. Billions of dollars were invested in Bitcoin ETFs accepted in Canada. In fact, the successful results in these ETF trials paved the way for the acceptance of other cryptocurrency ETFs. There are currently 5 cryptocurrencies ETFs available on the Canadian Stock Exchange.
As it is known, many Bitcoin investors around the world are waiting for the US Securities and Exchange Commission (SEC) to make a similar decision. The SEC is currently reviewing several Bitcoin ETF applications.
Why Is Bitcoin Popular in South America?
The region where cryptocurrencies are used the most globally is undoubtedly South America.
In South America, the use of Bitcoin and all other cryptocurrencies is increasing day by day. Brazil, Argentina, Mexico, Colombia and Chile rank high as the countries with the most Bitcoin users in worldwide research.
Citizens of countries on the continent prefer cryptocurrencies as an alternative to the negative reflections of economic crises and political events in their countries on their local currencies.
Inflation in Venezuela and Argentina in the past years is proof that the cryptocurrency trend in the continent is seen as a kind of safe door rather than a choice.
In the continent, also known as Latin America, despite the continuous increase in interest in cryptocurrencies, country governments are making various regulatory decisions regarding digital currencies.
Bolivia and Ecuador have imposed restrictions on the use of Bitcoin and all other cryptocurrencies. Brazil, on the other hand, obliges its citizens to notify the Brazilian Federal Reserve Service of any transactions they make with cryptocurrencies.