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investors face a scenario of uncertainty and challenges. Inflation in Brazil is on the rise, exceeding 10% in the last 12 months, and the basic interest rate, the Selic, is already at 9.25%, with expectations of further increases. In this context, what is the best path forward for those who want to invest in cryptocurrencies? Bitcoin ETFs are index funds that replicate the performance of the market's main digital currency, without the need to trade it directly at a broker. They were approved in the United States in October 2023, generating great expectations among investors, who saw this product as a simpler and safer way to expose themselves to the cryptoactive market. However, the initial euphoria quickly dissipated, in the face of some factors that affected the demand and price of Bitcoin. These include the persistence of global inflation, which has led central banks in advanced economies to signal monetary tightening earlier than anticipated, reducing the appeal of Bitcoin as an alternative store of value; the threat of the omicron variant of the coronavirus, which has brought new uncertainties about the global economic recovery; and the stricter regulation on cryptocurrencies in some countries, such as China, which banned all activities related to the sector. In Brazil, the scenario is also not favorable for investors in cryptocurrencies. In addition to high inflation, which erodes the population's purchasing power, the country is facing a fiscal and political crisis, which increases instability and distrust among economic agents. The exchange rate, which is one of the main determinants of the price of Bitcoin in the local market, has fluctuated a lot, reflecting domestic and external tensions. Given this, what is the best strategy for those who want to invest in cryptocurrencies? There is no single answer, as it depends on the profile, objectives and risk tolerance of each investor. However, some precautions and recommendations may be useful for those who want to venture into this market.Firstly, it is important to keep in mind that cryptocurrencies are highly volatile assets, which can undergo large price variations in short periods of time. Therefore, they should only represent a small portion of the investment portfolio, and should not compromise the emergency reserve or resources destined for short and medium-term objectives. Secondly, it is essential to be informed about the operation, risks and opportunities in the cryptoactive market, as well as applicable regulation and taxation. There are several reliable sources of information, such as specialized websites, podcasts, courses and books, that can help investors educate themselves on the topic. Thirdly, it is recommended to diversify investments in cryptocurrencies, not limiting yourself just to Bitcoin, but seeking other options that can offer profitability and security. There are more than 10 thousand cryptocurrencies on the market, each with its own characteristics, advantages and disadvantages. Some of them are Ethereum, Cardano, Solana, Binance Coin, Polkadot, among others. Finally, it is advisable to monitor the performance of investments in cryptocurrencies, but without getting carried away by emotion or fear. Price fluctuations are normal and are part of the dynamics of this market. The investor must have a long-term vision and a defined strategy, which may involve taking partial profits, rebalancing the portfolio or purchasing more cryptocurrencies in times of decline. Investing in cryptocurrencies can be a way to diversify the portfolio, seize the opportunities of a growing market and participate in a technological and financial revolution. However, caution, knowledge and planning must be exercised to avoid losses and frustrations. With the euphoria surrounding Bitcoin ETFs over, investors must be prepared to face the uncertainties and challenges that the cryptoactive market holds.

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 of investing 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 the interest of institutional investors, such as pension funds, multimarkets, 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.Bitcoin ETFs are a global trend that demonstrates the growing acceptance and maturity of the crypto market. Brazil is one of the protagonists of this story, showing that it has the potential to become a hub for innovation and development in the cryptoactive sector.