XRP news today: Brazil Launches World's First Spot XRP ETF, XRPH11

Hashdex, a prominent Brazilian crypto asset manager, has launched the world's first spot XRP ETF on Brazil's B3 stock exchange. This groundbreaking development marks a pivotal moment for institutional adoption within the crypto ETF market. The ETF, listed under the ticker XRPH11, is designed to track the Nasdaq XRP Reference Price Index. According to Hashdex, the fund will allocate at least 95% of its net assets to XRP, ensuring that investors gain direct exposure to the cryptocurrency's price movements.

The launch of XRPH11 on the B3 stock exchange is a collaborative effort between Hashdex and Genial Investimentos. This partnership underscores the growing interest and investment in cryptocurrency-related financial products within Brazil. The ETF's structure, which involves tracking the Nasdaq XRP Index and investing a substantial portion of its assets directly in XRP, aims to provide sophisticated investors with a reliable and transparent investment vehicle.

Brazil has marked a historical turning point after beating the United States to debut the first-ever exchange-traded fund (ETF) that tracks the spot price of Ripple-promoted token, XRP. XRP is the industry’s fourth most valuable cryptocurrency with a $158 billion market cap. Despite its dominance in the cryptosphere, regulatory obstacles have effectively hindered the launch of a spot exchange-traded fund (ETF) until now. Asset manager Hashdex has launched the Hashdex Nasdaq XRP Fundo de Índice, or Hashdex Nasdaq XRP FI. Hashdex received the sign-off from Brazil’s Securities and Exchange Commission (CVM) to launch the XRP-based ETF back in February. After the approval by the country’s financial investments regulator, the fund entered into a pre-operational phase. The ETF was undergoing preparatory steps during this time and was not available for trading.

Now trading on B3 under the ticker XRPH11, the fund will track the price of XRP across major crypto exchanges using the Nasdaq XRP Reference Price Index. The fund’s approval comes as issuers across the globe aim to address skyrocketing demand for crypto-focused investment products, amid a more friendly regulatory environment for these products and broadening acceptance among retail and institutional investors. Brazil is notably Latin America’s largest economy, and the third-biggest economy in the Americas. It is also the region’s most prominent crypto player: Brazil has more Bitcoin ETFs than any other Latin American nation, and many of the country’s major banks offer investors some sort of digital asset exposure.

The introduction of the XRPH11 ETF is not only a milestone for Brazil but also raises questions about the potential for similar products in other markets, particularly the United States. The success of this ETF in Brazil could pave the way for other regions to follow suit, potentially leading to increased institutional investment in XRP and other cryptocurrencies. However, the regulatory landscape in the U.S. remains a significant hurdle, and it is unclear whether such an ETF would be approved in the near future. Hashdex currently does not issue a spot Bitcoin ETF in the United States, but in December received approval from the SEC for a combo ETF offering investors exposure to both Bitcoin and Ethereum. According to the analyst's forecast, if approved, U.S.-listed funds could gobble between $4 billion and $8 billion in investor money. Spot Bitcoin funds have accrued over $38 billion in net inflows since going live in January 2024. Their Ethereum equivalents have attracted roughly $4 billion in net flows since trading began last July.

The launch of the XRPH11 ETF is a testament to the evolving nature of the cryptocurrency market and the increasing acceptance of digital assets by traditional financial institutions. As more investors seek exposure to cryptocurrencies through regulated and transparent investment vehicles, the demand for spot ETFs is likely to grow. This development in Brazil could serve as a blueprint for other countries looking to integrate cryptocurrencies into their financial ecosystems.