Hashdex Launches Hybrid Bitcoin Gold ETF on Brazil’s B3 Exchange

Hashdex, a Rio de Janeiro-based crypto asset manager, has partnered with Buena Vista Capital to introduce a novel hybrid Bitcoin and gold exchange-traded fund (ETF) on Brazil’s B3 stock exchange. This new product, named GBTC11, is set to launch on July 29, further cementing Brazil's position as a global leader in the cryptocurrency ETF sector. Upon its launch, the B3 exchange will host 22 ETFs offering full or partial exposure to crypto assets.

GBTC11 will track the FTSE Bitcoin and Gold Risk Weighted Index, providing a unique blend of two highly sought-after assets in volatile economic climates. The ETF dynamically adjusts allocations, increasing gold exposure during crypto market downturns and boosting Bitcoin exposure when gold is in a lull. With an estimated initial share price of R$30 (US$5.52) and an annual management fee of 0.98%, GBTC11 aims to offer portfolio protection and growth potential to both small and large investors.

Renato Nobile, founder and portfolio manager at Buena Vista Capital, highlighted the product's simplicity and discipline in translating a sophisticated diversification strategy into an accessible alternative for local investors. Henry Oyama, director of investment strategies at Hashdex, emphasized GBTC11's ability to provide a robust tool for wealth preservation and potential appreciation, combining the resilience of gold with the growth potential of Bitcoin.

Brazil, despite representing a small percentage of total crypto assets under management globally, boasts a remarkably complex capital markets infrastructure in the segment. These ETFs have attracted 180,000 investors, with daily transaction volumes averaging R$50 million (US$9.1 million) and total assets under management surpassing R$5 billion (US$920 million). Other notable products include Hashdex’s HASH11, which features a weighted basket of cryptocurrencies, and single-asset funds focusing on Bitcoin and Ethereum, which have been available since 2021.

In September 2024, Brazil became the first country to approve single-asset Solana ETFs, with Hashdex and QR Asset launching these products globally. In April of this year, Hashdex introduced the world’s first XRP ETF. As investors worldwide seek heightened exposure to crypto assets in a regulated and institutional-grade manner, Brazil stands out as a trailblazer in the cryptocurrency ETF market.

In summary, Brazil's introduction of a hybrid Bitcoin/Gold ETF marks a significant advancement in the cryptocurrency market. This innovative product offers investors a unique opportunity to diversify their portfolios, benefiting from the potential growth of digital assets while mitigating risks through the stability of gold. The ETF's success is likely to reinforce Brazil's leadership in the cryptocurrency market and inspire further innovation in the financial sector.