First-ever XRP spot ETF debuts on Brazil’s main stock exchange

Key Takeaways

Brazil has launched the first-ever XRP spot ETF, debuting on the B3 stock exchange.
The ETF, managed by Hashdex, is about to trace XRP’s value utilizing the Nasdaq XRP Reference Price Index.

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The world’s first ETF that tracks the spot value of XRP, Ripple’s native crypto asset, formally debuted on Brazil’s main stock exchange B3 on April 25, based on a press launch from Valor Econômico.

The fund, dubbed Hashdex Nasdaq XRP Fundo de Índice, or Hashdex Nasdaq XRP FI, is managed by Hashdex and administered by Genial Investments Securities Brokerage SA. Genial Bank SA is the ETF’s custodian.

The international asset supervisor secured greenlight from Brazil’s Securities and Exchange Commission (CVM) to launch the XRP-tied fund in February. The approval got here after the securities regulator authorized Hashdex’s spot Solana ETF final August.

Following regulatory approval, the fund entered right into a pre-operational part. During this part, it was not but actively buying and selling however was present process preparatory steps.

The ETF, now buying and selling on B3 underneath the ticker XRPH11, replicates the XRP Reference Price Index (NQXRP), which tracks the spot value of XRP throughout main crypto exchanges, based on the fund’s paperwork.

The fund will make investments at the very least 95% of its internet belongings in XRP and associated digital belongings, securities, or futures contracts linked to the index. As of the most recent information, XRPH11’s internet price is almost $40 million.

The ETF’s charge construction features a most international charge of 0.7% yearly for administration, administration, and distribution, plus a most custody charge of 0.1% per 12 months. No structuring charges apply to the fund.

With the launch of XRPH11, Hashdex has expanded its ETF lineup on B3 to 9 merchandise, stated Samir Kerbage, CIO of Hashdex.

He added that the brand new fund is a part of Hashdex’s mono-asset ETF group, which additionally contains BITH11, ETHE11, and SOLH11. These funds goal refined buyers like establishments who need to develop crypto methods on B3.

As Brazil debuts the world’s first XRP ETF, the US is anticipated to approve funds that observe the world’s fourth-largest crypto asset quickly.

If authorized by the SEC, spot Solana and XRP ETFs may draw as much as $14 billion in investments, as estimated by JPMorgan analysts.

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