The Securities and Exchange Commission of Brazil (CVM) has approved crypto asset manager QR Capital’s Bitcoin ETF that will trade on Sao Paulo’s B3 stock exchange under the QBTC11 ticker. Cryptocurrency indices, CME CF Bitcoin Reference Rate will be used for determining the net asset value (NAV) daily.
First-Ever Bitcoin ETF in Latin America
Brazil became the second country in the world to approve a Bitcoin exchange-traded fund, following three funds launching on the Toronto Stock Exchange (TSX). This also makes the first Bitcoin (ETF) of Latin America.
Launched by QR Capital, the firm describes itself as the largest cryptocurrency asset manager in Latin America.
🔴 URGENTE: CVM acaba de aprovar o primeiro ETF de Bitcoin da América Latina, o QBTC11.
O ETF da QR Asset Management, gestora do grupo QR Capital, será listado na B3, que se torna a segunda bolsa do mundo a ter um ETF 100% de Bitcoin.
— QR Capital (@qrcapital) March 19, 2021
QBTC11 is the fourth Bitcoin ETF to receive approval after three Canadian BTC ETFs were launched in recent weeks such as Purpose BTC ETF, Evolve BTC ETF, and CI Galaxy BTC ETF.
The first-of-its-kind Bitcoin ETF will be listed under the QBTC11 ticker on Brazil’s trillion-dollar stock exchange B3. Subsequently, B3 is also the second stock exchange in the world to offer access to such a product.
The listing date is yet to be disclosed, but Reuters reported for a June listing.
The United States Still Behind in the Race
Interestingly, the U.S. SEC has rejected all Bitcoin ETF applications so far. For instance, four Bitcoin ETFs applications are still pending review that includes WisdomTree Investments, VanEck Associates Corp., NYDIG Asset Management, and Valkyrie Digital Assets.
Responding to this, QR Capital assured that the approval of the QBTC11 can speed up the launch of a similar product in the United States.
Bitcoin ETFs are exchange-traded funds that track the value of the leading cryptocurrency and are traded on traditional financial markets rather than on crypto platforms. To put it simply, a Bitcoin ETF is listed on a stock exchange instead of a cryptocurrency exchange.
Catering to traditional investors, the share price of the exchange-traded fund will fluctuate based on the actual price of Bitcoin (BTC). This way, the investors do not buy the leading cryptocurrency directly, but rather a share that follows the price of the asset.