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South America’s first Bitcoin ETF begins trading on the Brazilian stock exchange

Brazilian stock exchange lists first Bitcoin ETF in South America
Jordan
Major
Updated: 06 Sep, 2021
2 mins read

Blockchain investment firm QR Capital’s Bitcoin exchange-traded fund (ETF) started trading on the Brazilian Stock Exchange today.

The Brazilian Stock Exchange and the Comisso de Valores Mobiliários (CVM, Brazil’s Securities and Exchange Commission) approved QBTC11 (B3) back in March and is the region’s first that only deals in Bitcoin.

According to the firm, the Bitcoin ETF would provide investors with exposure to digital assets through secure custody and daily liquidity without worrying about private keys.

Change to the conventional financial market

QR Capital CEO Fernando Carvalho revealed Bitcoin’s entry into the stock market represents a “historic moment for the crypto market as well as the conventional financial market.”

Carvalho elaborated: 

“We can see the market maturing in its search for safer and simpler bitcoin exposure options. Our bitcoin ETF is a landmark for both financial and cryptomarkets, once it is the convergence point between them. The Brazilian investor now has a regulated and robust choice to buy bitcoin.”

An ETF is a type of financial vehicle that allows consumers to purchase shares representing an asset, ranging from real estate to foreign currencies to Bitcoin. 

Crypto ETFs are popular because investors may buy shares that track the asset’s price without having to worry about owning and safely storing a cryptocurrency wallet.

Bitcoin price today

After briefly falling below $29,000 on Tuesday, bitcoin was back over $35,000 on Wednesday, following a series of price drops over the previous two days that brought the cryptocurrency near its 2021 low.

Bitcoin price: Finviz.com data

As shown in the graph above, the digital asset is currently hovering above $33,000, succumbing to a 2.7% drop value in the last 24 hours; however, Bitcoin dominance is still 46.2% of the crypto market, based on data from CoinMarketCap.com.

Meanwhile, investors are optimistic that US authorities will authorize a cryptocurrency ETF this year. Because of market manipulation concerns, the SEC has repeatedly rejected Bitcoin ETF applications. There are now nine Bitcoin ETFs under consideration by the SEC; however, the Commission has yet to rule on any of them.

Additionally, as per the sources, the Australian Securities Exchange (ASX) first crypto ETF might also launch by the end of the year, in response to rising institutional interest in digital assets.

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Jordan Major
Author

Jordan is an investor and market analyst. He's passionate about stocks, ETFs, blockchain, and digital assets. At Finbold.com, he delves into the technicalities to obtain future trends for new market traders and gives insights into user-friendly platforms for beginners.