The Brazilian Securities Regulator, Comissão de Valores Mobiliários (CVM) gives approval for an Ether exchange-traded fund (ETF). The holding company of QR Asset Management, QR Capital, announced the approval.
🔴 BREAKING: CVM aprova o 1º ETF de Ethereum da América Latina, o QETH11.
O ETF da QR Asset Management, gestora do grupo QR Capital, será listado na B3, que se torna a 1ª bolsa na América Latina a ter um ETF 100% Ethereum. pic.twitter.com/idluRrN2zq
— QR Capital (@qrcapital) July 13, 2021
Brazil’s prominent B3 Stock Exchange will be the platform for trading the fund under the ticker QETH11. The B3 platform also runs as both a regional exchange and a global customer service platform.
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Just like CME Group, QETH11 will utilize the exact Ether index. Also, QETH11 will inculcate institutional custodial services from the Winklevoss twins’ Gemini.
What The ETF Will Accomplish?
According to the announcement, the issuer of the fund gives an appraisal for the fund. It described the fund as an option for an investor that is regulated, safe, and simple. It sets the fund as a direct expository means for an investor to Ether using his preferred brokerage.
The investor shouldn’t worry about wallets, private keys, or exchange registrations by using the fund. In the flow of its operation, QR Asset Management purchases physical Ether for the product.
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The company also promises to offer its QETH11 investors top-notch security and transparency in their operations.
Recall that earlier in March; the B3 Stock exchange gave approvals for two crypto ETFs. The first ETF has 100% Bitcoin, while the second consists of five different cryptocurrencies of which Bitcoin was included. Then comes the recent announcement of CVM’s new move in cryptocurrency.
Crypto Market Receiving Acceptance All Over The World
The B3 Stock Exchange also serves as the platform for the trading of two earlier cryptos ETFs. The first crypto ETF that has the BTC-only product is under the management of QR Asset Management. Its trading started in late June using QBTC11 as the ticker.
At the time of its approval, it is believed that QBTC11 will trigger the launching of a similar product in the U.S. This belief comes from the fact that both CVM and the Security and Exchange Commission (SEC) are part of IOSCO.
Also, in February 2021, the Ontario Securities Commission of Canada gave its approval for Bitcoin ETF. At that moment, it was the first global physically settled BTC ETF.
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However, in some other places, the U.S. in particular, there are still delays for crypto ETF approvals. These delays from the country’s security regulators, irrespective of the incessant demands for the approvals, have been discouraging.
One of such cases is the approval delay from the U.S. SEC on Valkyrie Bitcoin ETF. According to one of the reports, SEC confirmed its delayed action as being appropriate. The regulatory body said it’s normal to take a longer period before moving on to the proposal.
This happened when Valkyrie filed an application on the New York Stock Exchange for its Valkyrie Bitcoin Trust in January.
Daily chart shows Ether may fall below the $1800 zone if the bears remain in control | Source: ETHUSD on TradingView.com
Featured image from Pixabay, chart from TradingView.com