Brazil has made history by approving the world’s first spot XRP exchange-traded fund (ETF). It is a huge step for Brazil when it comes to the world of cryptocurrencies putting it above many other major countries, such as the U.S. Brazil’s Securities and Exchange Commission (CVM) approved a well known company, Hashdex, in charge of crypto investment products to launch a XRP ETF.
The new ETF is named the Hashdex Nasdaq XRP Index Fund. But the exact date of the launch has not been announced, and it will be traded on Brazil’s B3 stock exchange. As of now, the fund is in its final phase of setup and when all are ready investors will be able to buy it. In Brazil, Hashdex also runs other crypto ETFs for Bitcoin, Ethereum and Solana.
But what makes this XRP ETF unique? Since investors do not have to buy and store the coins themselves, it is the first one that allows investors to directly own XRP. This brings investing within reach and a safer bet for a lot of people. The U.S. has been slow to approve such funds but Brazil is showing that it is open to new technology and ideas in finance.
Many of these companies like CoinShares, WisdomTree, and Grayscale, have applied to launch their own XRP ETFs in the US. But none of them have been approved by the U.S. Securities and Exchange Commission (SEC) yet. Some experts believe the SEC is merely waiting until its previous case against Ripple, the company behind XRP, is resolved in order to take any steps.
After Brazil approved its XRP ETF, the price of XRP rapidly increased by about 7-8% and went up as high as $2.72. Indicators also show that the price can keep on rising and investors are excited.
Aside from ETF news, Braza Group, a Brazilian bank plans to launch a stable coin called BBRL which is pegged to the Brazilian real value. Initially, it will be available for large businesses and may extend to everyday customers in early 2025.
These developments make Brazil the leader in crypto innovation. It shows its readiness to explore new opportunities in the blooming world of digital finance by taking quick decisions on approving the XRP ETF.
Also read: Franklin Templeton Enters the Solana ETF Race with Bold New Filing
