The Brazilian Securities and Exchange Commission (CVM) has approved the launch of the world's first exchange-traded fund (ETF) for the cryptocurrency XRP. The ETF is from the Brazilian crypto asset manager Hashdex and will be managed by Genial Investimentos. The fund is called Hashdex Nasdaq XRP Index Fund and is in the pre-operational phase, according to the CVM. This is the phase in which managers and distributors seek investors to build the fund's initial assets. The digital currency XRP is Ripple's international payments token and is the third largest cryptocurrency in the world by market value, with a capitalization of US$$ 150.6 billion. Silvio Pegado, Ripple’s regional director for Latin America, says that after the approval of one of the world’s first bitcoin ETFs in 2021, the approval of the first XRP ETF by the CVM demonstrates Brazil’s “visionary approach” to the crypto market. “Through regulation and public consultations, Brazil continues to position itself as a country open to innovation, and we hope it will be central to more pioneering advances in the crypto sector in the future,” he says.
An XRP ETF is something that does not yet exist even in the United States, where Ripple is headquartered. Large asset managers such as Grayscale and Bitwise have applications to launch crypto ETFs registered with the US Securities and Exchange Commission (SEC).
In a statement, Hashdex confirmed that it has obtained the registration of an XRP ETF. The company says it will release more information about the start of trading soon.
