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B Vrettos and M Bacina

Brazilian Bitcoin ETF brings benefits to bourse

Updated: May 3

Following the three trailblazing Bitcoin Exchange Traded Funds (ETFs) being listed in Canada on the Toronto Stock Exchange, Brazil is now the second country in the Americas to approve a Bitcoin ETF.


Brazilian based QR capital received approval from the Brazilian Securities and Exchange Commission for listing on the B3 Stock Exchange. The ETF is due to begin trading in June of this year and will be available to any Brazilian citizen and investors with a broker affiliated with B3. Sao Paulo based regulatory attorney, Rosine Kadamani, said:

The approval of the ETF in Brazil is significant....because now there will be another option for investing in bitcoin in a regulated environment.

CEO of QR Capital, Fernando Carvalho, expressed that he saw the Bitcoin ETF as a "game changer" because it provides access to legacy markets, regulated investments and the ability to invest in these new assets without needing the technical knowledge to secure the assets using digital keys. Carvalho expects the adoption of Bitcoin ETFs to readily spread to other jurisdictions. These benefits may be why investors so quickly piled into Canada's first Bitcoin ETF which saw "inflows of $564 million in its first two days".


Custody providers for digital keys are becoming increasingly relevant and QR Capital will reportedly rely on international partners such as BitGo and Coinbase Custody based in the US. Interestingly, the Canadian ETFs also leveraged custodian providers based in the US such as Gemini. The US appears to be a key supplier of custody solutions recognised as regulated in other jurisdictions without a Bitcoin ETF launching on any markets.


It will be interesting to see the US Securities and Exchange Commission's approach to the proposed VanEck's Bitcoin ETF or Wise Origin Bitcoin ETF and whether these further efforts to list will finally lead to a US Bitcoin ETF being approved.

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