#$BTC # Brazilian enthusiasm with the approval of Bitcoin ETFs

Brazil is one of the countries that stands out the most in the world scenario of Bitcoin ETFs, index funds that replicate the performance of the most famous cryptocurrency in the world. In 2023, Brazil launched the first Bitcoin ETF in Latin America, QBTC11, which already accumulates more than R$128 million in assets under management¹. Since then, another 12 crypto ETFs have been listed on the Brazilian exchange B3, covering different indices and digital currencies².

Bitcoin ETFs are a way to invest in cryptocurrency without having to buy and store bitcoins directly, which can involve security risks, operational costs and technical complexity. Through ETFs, investors can expose themselves to the crypto market with more practicality, diversification, transparency and regulation³.

Brazilians' enthusiasm for Bitcoin ETFs is reflected in the numbers. According to data from B3, the average daily trading volume of crypto ETFs in 2023 was R$23.7 million, an increase of 1,233% compared to 2022⁴. Furthermore, the number of individual investors investing in crypto ETFs grew 64% between December 2020 and May 2021, reaching 24,968¹.

Bitcoin ETFs also attract interest from institutional investors, such as pension funds, hedge funds, family offices and wealth managers. These agents look to crypto ETFs as a way to diversify their portfolios, protect themselves from inflation, and take advantage of the appreciation potential of the crypto market.

Brazil is not the only country betting on Bitcoin ETFs. Other nations, such as Canada, Germany, Switzerland and Singapore, also have products of this type available to their investors². In the United States, the SEC (Securities and Exchange Commission) approved this Wednesday (10) the country's first spot Bitcoin ETFs, after months of waiting and expectation. Among them is the product of the Brazilian manager Hashdex, which already operates a Bitcoin ETF on B3.