Brazil Approves First Spot XRP ETF, Beating the US to Market
Brazil has become the first country to approve a spot XRP exchange-traded fund, with financial regulator CVM granting approval to crypto asset manager Hashdex. The Hashdex Nasdaq XRP Index Fund is now in a pre-operational phase and will soon debut on Brazil’s B3 stock exchange, though an official launch date has not yet been announced.
This approval comes as demand for crypto-based investment products continues to grow, with both retail and institutional investors seeking more regulated ways to gain exposure to digital assets. Several firms, including Bitwise, 21Shares, CoinShares, and Grayscale, have recently filed applications for spot XRP ETFs in other markets, but Brazil is the first to move forward with an official listing.
Brazil’s Expanding Role in Crypto Markets
As Latin America’s largest economy, Brazil has positioned itself as a key player in the global crypto market. The country has more Bitcoin ETFs than any other nation in the region, and major banks already offer digital asset investment options.
While Hashdex has yet to secure a spot Bitcoin ETF in the US, the firm did receive SEC approval in December for a fund that provides exposure to both Bitcoin and Ethereum.
The Global XRP ETF Race
XRP, originally developed by the founders of Ripple, is the world’s third-largest cryptocurrency by market capitalization, valued at approximately $158 billion. Its use case focuses on cross-border payments, aiming to make international money transfers faster and more efficient.
Meanwhile, the US Securities and Exchange Commission is still reviewing multiple spot XRP ETF applications, including those from CoinShares and other asset managers. Analysts at J.P. Morgan estimate that between $3 billion and $6 billion could flow into XRP funds if approved, following the $40 billion in net inflows that spot Bitcoin ETFs have attracted since launching in January 2024.
With Brazil leading the way, the spotlight is now on the US and other markets to see whether they will follow in approving spot XRP investment products.
Featured image from: cointelegraph.com