QBTC11, Latin America’s first 100% Bitcoin (BTC) ETF, debuted on the Brazilian stock exchange on Wednesday June with a performance below expectations.
Developed by QR Asset Management, from QR Capital, the ETF becomes one more option for Brazilians who want to invest in Bitcoin. However, the figures for the first day of trading on B3 were not encouraging.
On its first day of trading, QBTC11 reached just $ 27 million in funding, just $ 2.8 million more than the amount raised before its debut. The shares opened Wednesday’s trading session at $ 1.91 and closed at $ 2.16, an increase of 13.1%.
The performance is much lower than that of HASH11, the first cryptocurrency ETF launched on the Brazilian stock exchange, which moved 31.5 million dollars on the first day and It soon took third place as the largest equity ETF with $ 209 million raised.
However, the market timing for QBTC11 is quite different. At HASH11’s debut, Bitcoin was trading at $ 58,000, roughly 43% more than the 33,000 dollars registered on the first day of trading an ETF that invests 100% in BTC.
According to the B3 cryptocurrency ETF in operation, QBTC11 has 100% exposure to the price of Bitcoin. The product follows the index of the world’s largest derivatives market, the Chicago Mercantile Exchange (CME), which is used as a reference in trading the cryptocurrency futures market.
QR Capital CEO Fernando Carvalho highlighted the milestone that the ETF is achieving by inserting even more Bitcoin into the traditional Brazilian financial market:
“QBTC11 is a milestone both in the conventional financial market and in cryptocurrencies, as it is a point of convergence between the two. Investors now have a robust, low-cost, regulated option to directly expose themselves to the most important cryptocurrency on the market, Bitcoin. “
With an administration fee of 0.75% per annum, the ETF is available to any user registered on the Brazilian stock exchange, with a minimum contribution of $ 20, or approximately 10 shares.
Advantages of the Bitcoin ETF
A 100% Bitcoin ETF raises questions about its usefulness, as total exposure to BTC is equivalent to buying the cryptocurrency on an exchange. The product, therefore, is aimed at those who are not familiar with the registration and management of cryptocurrency platforms.
According to QR Asset, the main attraction of QBTC11 is the offering on the stock exchange, which facilitates access to investors with a view to greater security and regulation. The ETF is supervised by the Brazilian Securities and Exchange Commission (CVM) and custody is carried out by the American Gemini.
The CEO of QR Capital also points out that the ETF will have “good liquidity and will be widely accessible on the platforms of traditional Brazilian brokers”, being an easy acquisition for users who do not yet have an account in any cryptocurrency exchange.
The Bitcoin ETF post QBTC11 disappoints and raises just $ 2.8 million after going public was first seen on BeInCrypto.