XRP news today: Brazil's First Spot XRP ETF Debuts With 12% Gains

The world’s first spot XRP exchange-traded fund (ETF) has made a strong debut, achieving double-digit gains in its initial days. This groundbreaking ETF, launched in Brazil, marks a significant milestone in the cryptocurrency market, providing investors with a new avenue to engage with XRP. The ETF, managed by Hashdex, is listed on Brazil’s B3 stock exchange and tracks XRP’s price using the Nasdaq XRP Reference Price Index. The fund, with the ticker symbol XRPH11, invests at least 95% of its assets in XRP, utilizing futures contracts and other securities to mirror the Nasdaq Reference Price Index.

The approval of this ETF by the CVM, Brazil’s Securities and Exchange Commission, in February paved the way for its launch this week. Hashdex, an asset manager, will market the fund as “Hashdex Nasdaq XRP Fund de Indices,” with fund management responsibilities handled by Genial Investimentos and custodian services provided by Genial Bank SA. The ETF comes with an annual management cost of 0.8%, comprising a 0.7% management fee and a 0.1% custodian fee. This is Hashdex’s ninth cryptocurrency ETF listed on the B3 exchange, following similar products for Bitcoin, Ethereum, and Solana, reflecting Brazil’s growing acceptance of cryptocurrency investments.

The standout performance followed a massive late-session surge, with the ETF spiking sharply from R$19.87 ($3.58) to R$22.10 ($3.98) in the final hour of trading. The ETF is issued by Hashdex, a Brazilian crypto asset manager that has previously launched similar funds for Bitcoin (BTC) and Ethereum (ETH). XRPH11 offers direct exposure to the price of XRP, serving as a key entry point for institutional investors.

It’s worth noting that the spot ETF has largely mirrored XRP’s price performance over the period. Typically, a spot ETF is viewed as a trigger for a possible price rally. However, in this case, XRP has made only modest gains, a move that can be attributed to the relatively small size of Brazilian markets compared to the United States. In this context, attention has shifted to the U.S. Securities and Exchange Commission (SEC) regarding the possible approval of a similar spot product. A decision is expected later this year.

For now, U.S. investors will gain access to an XRP futures ETF after ProShares received regulatory approval to offer the product. With new crypto-friendly leadership at the SEC, expectations are rising that approval of a spot ETF could be just around the corner as whales move massive assets amid growing hype.

From a technical standpoint, XRP is showing bullish momentum, trading above its 50-day and 200-day simple moving averages (SMA), indicating an ongoing uptrend. The relative strength index (RSI) sits at 62, reflecting strong buying interest but also suggesting XRP is approaching overbought territory.

The launch of this ETF puts pressure on the United States, where no spot XRP ETF exists despite XRP being created by a US-based company. XRP ranks as the third-largest cryptocurrency excluding stablecoins, with a reported market value of over $120 billion. Ripple, the firm most closely associated with XRP, has made progress in resolving regulatory matters with the US Securities and Exchange Commission, creating a more favorable climate for crypto regulation in the US. Several large asset managers, including Grayscale and Franklin Templeton, have filed requests for XRP spot ETFs in the US, with analysts forecasting a 73% probability of approval. The US has seen the launch of a leveraged XRP ETF but has yet to approve a spot ETF, increasing pressure on American regulators to accept such investment options for US investors seeking exposure to XRP without holding it directly.

Hashdex’s initiative signifies a pivotal moment in the integration of cryptocurrencies into mainstream financial markets, positioning Brazil as an early adopter in the expanding field of crypto ETFs. The ETF’s performance and the regulatory developments surrounding it highlight the growing interest and acceptance of cryptocurrencies in the global financial landscape.