The Brazilian Securities and Exchange Commission (CVM) has approved the launch of the first Bitcoin exchange traded fund (ETF) in Latin America. The fund, called QBTC11, will be launched by QR Capital.
The value of ETF units (shares) is calculated based on a basket of specific assets, following their market value. In the case of Bitcoin ETFs, the exchange-traded fund is tied to that cryptocurrency. Bitcoin ETFs are traded on traditional exchanges, allowing institutional investors secure access to the digital asset market.
QR Capital announced that QBTC11 will be listed on the Sao Paulo Stock Exchange (B3). This fund has become the world’s fourth regulated investment product pegged to Bitcoin. At the beginning of the year, three similar traded exchange-traded funds on BTC were launched in Canada.
QBTC11 will track the dynamics of the CME CF Bitcoin Reference Rate from the Chicago Mercantile Exchange (CME Group) and the price benchmarks of the cryptocurrency index provider CF Benchmarks. QR Capital management believes that the launch of QBTC11 will be an incentive for the United States to launch a similar investment product, since CVM is a member of the International Organization of Securities Commissions (IOSCO).
Over the past few years, many applications have been filed with the US Securities and Exchange Commission (SEC) to launch Bitcoin ETFs. However, the regulator rejects them on the grounds that the cryptocurrency market is overly prone to manipulation. The agency has repeatedly denied the brothers Cameron and Tyler Winklevoss in the creation of an ETF pegged to Bitcoin.
Despite the growing popularity of cryptocurrencies in Brazil, local regulators are tightening their control over the digital asset industry. Earlier, the country’s tax service obliged citizens to report all transactions with cryptocurrencies. This led to a decrease in trading volumes on some exchanges. These included the Brazilian platforms Acesso Bitcoin and Latoex, which were forced to close due to stricter regulation.
More details at Bits.media: https://bits.media/regulyator-brazilii-odobril-zapusk-pervogo-v-latinskoy-amerike-etf-na-bitkoin/
