Brazil becomes first country to approve a spot XRP ETF – Crypto News – Crypto News
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Brazil becomes first country to approve a spot XRP ETF Brazil becomes first country to approve a spot XRP ETF

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Brazil becomes first country to approve a spot XRP ETF – Crypto News

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Brazil’s Securities and Exchange Commission (CVM) has approved the country’s first spot exchange-traded fund (ETF) linked to XRP, the first of its kind globally, with the approval coming into effect on February 18.

The ETF, introduced by asset management firm Hashdex, will provide investors a regulated way to gain exposure to XRP through Brazil’s stock exchange, B3. XRP is a digital asset associated with the Ripple blockchain.

The fund, officially known as the Hashdex Nasdaq XRP Index Fund, is currently in the pre-operational state. Genial Investimentos, a Brazilian brokerage firm, has been named the fund administrator. While Hashdex confirmed the regulatory approval, the fund’s structure and trading launch date have yet to be revealed.

Market observers view the introduction of the ETF as part of a broader trend toward expanding cryptocurrency investment options. XRP is the third-largest cryptocurrency by market capitalisation, behind Bitcoin and Ethereum, and has a valuation of approximately $151 billion.

Silvio Pegado, Ripple’s managing director for Latin America, said XRP’s established role in cross-border payments and growing institutional interest contributed to its selection for an ETF. He also pointed to Brazil’s positive approach to cryptocurrency regulation as a factor enabling such financial products’ wider accessibility.

Brazil has emerged as a prominent market for cryptocurrency in Latin America. According to an October 2024 report from Chainalysis, users in the country deposited around $90 billion in digital assets between July 2023 and June 2024. Stablecoins accounted for roughly 60% of that volume, with Bitcoin, Ethereum, and other altcoins making up the rest.

The Hashdex XRP ETF’s approval comes as other asset managers such as Grayscale, 21Shares, and Cboe BZX, are submitting applications for comparable products in other markets. The Securities and Exchange Commission (SEC) in the US recently acknowledged filings for spot XRP and Dogecoin ETFs. Bloomberg analysts James Seyffart and Eric Balchunas estimate a 65% likelihood of XRP ETF approval in the US by the end of 2025, despite regulatory uncertainty due to ongoing Ripple and SEC litigation.

A 2023 court ruling found that XRP was not a security when sold on secondary markets, but the SEC has appealed the decision, maintaining that Ripple violated securities laws in certain sales. Analysts at JP Morgan have estimated that US-listed XRP ETFs could attract between $3 billion and $6 billion in investment if approved.

While the timeline for regulatory decisions in the US remains unclear, the launch of Brazil’s XRP ETF could shape institutional sentiment and provide a model for other markets exploring cryptocurrency-based investment products.

(Photo by Unsplash)

See also: AI-driven cryptocurrency scams set to surge in 2025 as fraud tactics evolve

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Tags: cryptocurrency, ETF

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