Brazil’s securities regulator, the Comissão de Valores Mobiliários (CVM), has granted approval for asset manager Hashdex to launch the world’s first spot XRP exchange-traded fund (ETF), according to a report by Wu Blockchain. While the exact listing date on Brazil’s B3 stock exchange remains unknown, the approval marks a great milestone for Ripple’s native cryptocurrency token XRP.
Brazil Leads the way
Hashdex, which already manages Brazil’s first Solana ETF, will collaborate with local investment bank BTG Pactual to get the operations functional for the XRP ETF. The product is expected to track the token’s market price directly, mirroring the structure of Hashdex’s existing Bitcoin and Ethereum ETFs. This development indicates that Brazil is committed towards innovation in the crypto sector. It had approved two Solana ETFs in August 2024.
“Ripple’s native cryptocurrency token is a natural choice for an ETF due to its real-world utility, growing institutional demand and its overall market cap,” said Silvio Pegado, managing director of Ripple in Latin America.
The price of Ripple’s native cryptocurrency token has also experienced an uptick with this development. At press time, the price of the token stands at $2.58 with a surge of 0.4% in the last 24 hours as per CoinGecko.
US Regulators Lag Behind on XRP ETF Approvals
On the contrary, U.S. regulators are stalling the progress on XRP-based investment vehicles. The Securities and Exchange Commission (SEC) recently acknowledged 19b-4 filing from Grayscale and NYSE Arca for a spot XRP ETF, initiating a 21-day public comment period. However, Ripple’s ongoing legal battle with the SEC over Ripple native token’s classification as a security creates a sense of doubt on near-term approval of the said ETF product.
Senior Bloomberg ETF analyst Eric Balchunas noted that with change in leadership at the center, there could be a regulatory shift within the SEC as well which could work in favor of the crypto industry.
Brazil’s proactive stance contrasts sharply with U.S. hesitation, exemplified by the SEC’s rejection of Solana ETF proposals from VanEck and 21Shares in 2024. While Hashdex expands its Latin American crypto ETF dominance, U.S. investors await clarity on digital asset regulations that could unlock XRP and Solana ETFs.
Also Read: Vitalik Buterin: Ethereum and Bitcoin Share Compatible Goals
