The ETF tracks the price of the Chicago Mercantile Exchange index, but in Brazilian reais.
It is the second cryptocurrency ETF that can be accessed in Brazil.
Brazilian stock investors already have at their disposal in the brokerage houses the bitcoin exchange-traded fund (ETF) of the Canadian company QR Capital.
This ETF had been authorized in March of this year by the Securities and Exchange Commission of the South American country to be able to be traded in that nation. It does under the code QBTC on the São Paulo Stock Exchange (Bovespa).
Unlike the Canadian version of this fund, in Bovespa it is bought and sold using the Brazilian national currency, the real. At the time of writing this article, Each share of the ETF is trading at 10.39 reais (USD 2.11). Although its price differs from that of bitcoin (BTC), which is the underlying asset, the percentage change tends to be the same. The fund tracks the Chicago Mercantile Exchange BTC index.
According to specialized media in finance and stock market affairs, QBTC’s launch on the São Paulo stock market was “disappointing”. Is that QBTC reached USD 27 million in financing on June 23, on its first day of trading, only USD 2.8 million more than the amount raised before its debut. The interest of Brazilian investors to put capital in BTC indirectly was not what was expected.
In any case, the director of QR Capital for Brazil, Fernando Carvalho, is enthusiastic and considers the launch of the fund as a milestone for the Brazilian stock market. “Investors now have a robust, low-cost, regulated option for direct exposure to the most important cryptocurrency on the market: bitcoin,” he says.
At the time of writing, each share of the QBTC ETF is trading at 10.39 reais on the São Paulo Stock Exchange (Bovespa). Source: Google Finance.
East not the first cryptocurrency-related ETF that Brazil has. As reported by CriptoNoticias, last March the listed fund of the Bermuda company Hashdex was also approved, which tracks the price of a basket of cryptocurrencies: bitcoin, ether (ETH), litecoin (LTC), chainlink (LINK), bitcoin cash (BCH) and lumens (XLM). This ETF is also active on the São Paulo Stock Exchange.
Bitcoin ETFs: Hybrid, Volatile, and Regulated Products
In the Cryptopedia, which is an educational section of this information portal, ETFs are defined as “funds that can be traded on the stock market as if it were a stock.” It is added that, for this reason, “they are hybrid financial products, since they have characteristics of an investment fund and operate like a share.
Bitcoin ETFs and other cryptocurrencies are usually used by those who want to expose themselves to the volatility of the price of these assets, but under the supervision of stock regulators. In particular, some institutional investors find interest in these types of products, although anyone with a client account can access them.
Bitcoiners tend to be very aware of the issue of exchange-traded funds, since for years they have been waiting for that the United States Securities and Exchange Commission (SEC) authorizes these products in your jurisdiction. So far, this has not happened, and there is no indication that it will happen in the near future.