Hashdex Launches First XRP Spot ETF in Brazil
The world's first XRP-linked spot exchange-traded fund (ETF), issued by Hashdex and managed by Genial Investimentos, began trading on April 25 on the Brazilian B3 exchange.
Details of the New XRPH11 Fund
Listed under the symbol XRPH11, the fund tracks the Nasdaq XRP Reference Price Index. According to Hashdex, the fund will allocate at least 95% of its net assets to XRP. This launch marks Hashdex's ninth ETF launch on the Brazilian stock exchange.
The asset management firm may use direct or indirect holdings, futures contracts that aim to replicate the performance of the index, or other financial instruments that reflect the price of XRP as determined by the Nasdaq benchmark to provide the desired exposure.
Expanding Hashdex Offerings
This launch expands Hashdex's single-asset ETF offerings in B3, which also includes products based on Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).
Targeting Sophisticated Investors
According to Hashdex's Chief Investment Officer, Samir Kerbaj, the fund aims to attract sophisticated investors, including institutions looking to build cryptocurrency portfolios within the Brazilian stock market infrastructure.
He added that the fund aims to expand investor access while complying with regulatory guidelines regarding fund integrity and transparency.
$8 Billion Market
XRP-linked exchange-traded products (ETPs) recorded assets under management (AUM) of $950 million as of April 18, according to a CoinShares report.
Additionally, XRP funds recorded the strongest weekly inflows among other cryptocurrency-related ETPs last week, with $37.7 million allocated.
According to JPMorgan's January forecast, these products could attract up to $8 billion in net inflows, more than eight times the current volume of assets under management.
Competition in the Global Market
Although Hashdex has had a strong start in conquering this market, Brazil represents only 0.9% of the total global assets under management for cryptocurrency exchange-traded products. XRPH11 must find global appeal to access a significant volume of assets under management and give Hashdex a comfortable position in the race.
Summary of Key Points
The first XRP spot exchange-traded fund (ETF) has been launched in Brazil.
The new fund, codenamed XRPH11, tracks the Nasdaq XRP Reference Price Index.
Hashdex aims to attract sophisticated and institutional investors.
The market for XRP-linked exchange-traded products is expected to grow to $8 billion.
The challenge lies in achieving global appeal for the fund.
