Brazilian regulator Comissao de Valores Mobiliares (CVM) has approved the first exchange-traded fund tracking Ethereum (ETH) performance in Latin America.
The Brazilian regulator already approved a bitcoin ETF a few months ago. Now, an Ethereum ETF will track the performance of the second largest cryptocurrency. The fund is managed by QR Asset Management. The firm had the following to say about the new Ethereum ETF:
“We are expanding the horizon of diversification. QETH11 will be a simple, safe and regulated option for any investor.
QETH11 is the ticker symbol – equivalent in Germany to the six-digit Wertpapierkennnummer (WKN) or twelve-digit International Securities Identification Number (ISIN).
Cooperation with Winklevoss twins
What is interesting here is that there is a collaboration with the Gemini crypto exchange. Gemini is the exchange of the Winklevoss twins. The Winklevoss twins are some of the most prominent faces in the crypto world. Gemini, in this case, is responsible for the custody of cryptocurrencies.
They gained notoriety by accusing Mark Zuckerberg of stealing the idea for the Facebook social network from them. Through a settlement, they received $65 million after all. In 2013, you announced the investment of eleven million US dollars in BTC. On the Gemini exchange, you can trade many other cryptocurrencies besides BTC and Ethereum. You also plan to have a credit card with a cryptocurrency rewards system like BlockFi.
Ethereum ETF next step for crypto adoption in Latin America.
Even though it’s just an ETF and not a direct new law for cryptocurrencies, the regulatory approval also shows that Brazil is not closing its mind to cryptocurrencies other than bitcoin.
While El Salvador, with its legalization, and Paraguay, with its yet-to-be-released new bill, have rather less impact on the crypto market due to their population size, Brazil is a different story. With around 211 million inhabitants, the population is about 30 times larger than that of Paraguay or El Salvador.
The influence on the crypto market is thus greater – above all also
In Latin America. Should countries such as Colombia, Argentina or Peru also take steps towards the adoption of Bitcoin, Ethereum and Co. over the coming months and years, Latin America can become the pioneers in the crypto market. However, this will require much more than just the approval of an Ethereum ETF.
Ethereum price still under pressureMeanwhile, the
Ethereum price does not manage to recover. With a drop of 6.5 percent in the last 24 hours or 20 percent within the last seven days, the second-largest cryptocurrency has suffered significant losses. The trend is currently reinforced by the downtrend that has hit the entire crypto market in the last 24 hours. The market capitalization of all cryptocurrencies is currently only 1.3 trillion USD. Can the downward trend be stopped?
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