An XRP ETF named XRPH11 has officially launched on Brazil’s B3 stock exchange, making it the first of its kind globally. Managed by Hashdex, the ETF is tailored for institutional investors, with a predominant focus on XRP investments, both direct and indirect.
Brazil’s proactive approach in approving and introducing the XRP ETF stands in stark contrast to the regulatory pace observed in the United States. This move underscores Brazil’s progressive stance towards cryptocurrency adoption.
Hashdex, the firm behind XRPH11, secured approval for the XRP ETF in Brazil back in February, indicating a strategic pivot towards the Brazilian market nearly two years ago. Today, this initiative has come to fruition, with the announcement of XRPH11’s trading commencement by B3.
Samir Kerbage, Chief Investment Officer at Hashdex, highlighted that XRPH11 is part of a series of mono-asset funds aimed at sophisticated investors, particularly institutional players seeking to diversify their portfolios with crypto assets on B3.
The XRP ETF is designed to allocate a minimum of 95% of its assets to XRP, encompassing both direct holdings and related investments. While the initial trading data for XRPH11 remains undisclosed, Hashdex’s confirmation of the ETF’s live status is a significant milestone for Brazil’s crypto market.
While the US regulators have shown interest in approving similar products, the process has been considerably slower compared to Brazil’s swift approval and subsequent market launch. Last year, Brazil also made history by approving the first Solana ETF, although its impact on the market was relatively subdued.
The trading performance of XRPH11 will provide valuable insights into the market dynamics. With the possibility of a surge in altcoin products in the US ETF market, these offerings may face challenges in competing with Bitcoin’s dominance.
As per current predictions by Polymarket, there is a high likelihood of an XRP ETF approval in the US by the year’s end. The success or failure of XRPH11 in Brazil could potentially influence the trajectory of XRP and other altcoins in the global ETF landscape.
Overall, Brazil’s pioneering move in launching the world’s first XRP ETF signifies a significant development in the crypto investment space, setting a precedent for other markets to follow suit.