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World’s first Decentralized Finance (DeFi) ETF launched in Brazil

World’s first Decentralized Finance (DeFi) ETF launched in Brazil

Hashdex, a major worldwide crypto-focused asset manager, revealed in a press statement on Wednesday, January 18 that the world’s first decentralized finance (DeFi) exchange-traded fund (ETF) has been approved. 

With the ETF, investors will have exposure to all components of the DeFi ecosystem in a diversified, safe, and regulated manner. The ETF will be launched on the B3 stock market in Brazil on February 17, 2022, under the ticker code DEFI11.

CEO of Hashdex, Marcelo Sampaio stated: 

“As the largest crypto asset manager in Latin America, Hashdex continues to deliver on our mission of helping people around the world better understand and gain diversified exposure to the crypto asset class.”

He added:

“We are confident that DeFi, through its innovative and disruptive technology, will exponentially grow and play a vital role in the financial sector of the future. By offering the first DeFi ETF in the world, we are providing our global investors with the ability to play a part in the next evolution of the crypto ecosystem.”

What is DeFi?

In order to facilitate the development of a new infrastructure for conventional financial services, such as loans, insurance, and value transfers, DeFi makes use of blockchain technology and smart contracts.

DEFI11, in collaboration with CF Benchmarks, a renowned worldwide crypto index provider, will replicate the “CF DeFi Composite Index” (BLOOMBERG: CFDFMCUB), an index that adheres to stringent eligibility requirements for DeFi.

To fully represent the whole value chain backing DeFi services, the index consists of a total of 12 assets, which are grouped into three sub-portfolios. DeFi dApps, protocols that provide practical and modern solutions for financial services such as Uniswap, AAVE, Compound, Maker, Yearn, Curve, Synthetix, and AMP.

In addition to service protocols, which support DeFi protocols with data query services and scalability solutions such as Chainlink, The Graph, and Polygon, and lastly settlement networks, which are blockchains on which transactions can be validated and recorded, are also being developed (Ethereum network).

Brazil an ETF innovator in South America

Last year Finbold reported the first Bitcoin exchange-traded fund in South America started trading on the Brazilian Stock Exchange in Septmeber. Providing investors with exposure to digital assets through secure custody and daily liquidity without the need to worry about private keys.

This was followed by the Brazilian Securities Commission (CVM) authorizing the first ETF in Latin America that tracks the performance of Ethereum, with QR Asset Management administering the fund.

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