The Brazilian Securities and Exchange Commission (CVM) has approved the launch of an exchange-traded fund (ETF) pegged to ETH. It will be named QETH11 and will be operated by QR Asset Management.
QETH11 will be listed on the Brazilian B3 Stock Exchange, registered in São Paulo, which serves clients around the world. QR Asset Management will use the custodian service of the Gemini cryptocurrency exchange, owned by brothers Cameron and Tyler Winklevoss.
The company’s management believes that cryptocurrency ETFs are an easy and secure way to gain access to ether through a broker, while complying with regulatory requirements. At the same time, investors do not have to worry about registering on cryptocurrency exchanges, opening a wallet or storing private keys.
This investment product will be the first ETF to launch in Latin America. In March, CVM granted permission to QR Capital to open a Bitcoin ETF. Note that the world’s first cryptocurrency ETF was approved this year by the Ontario Securities Commission.
As for the US, the US regulator is in no hurry to give the green light to these investment instruments. The US Securities and Exchange Commission (SEC) is postponing its consideration of applications for launching ETFs tied to cryptoassets, despite the growing interest of institutional investors. The agency fears that investors may suffer significant losses due to market manipulation.
Earlier, SEC Commissioner Hester Pierce said that with the arrival of Gary Gensler as chairman of the SEC, the regulator may be more loyal to cryptocurrencies. In addition, a CFRA Research analyst suggested that the Commission would approve the launch of cryptocurrency ETFs in the next two years.
