The Brazilian Securities and Exchange Commission (CVM), Brazil’s regulator, has just given its approval for the first exchange-traded fund (ETF) based in Ethereum in Latin America.
The Ether ETF, dubbed QETH11, will track the price of the second largest cryptocurrency by market cap. The product hast been launched by QR Asset Management, which has also announced the ETF will be listed on the Brazilian Stock Exchange B3.
The ETF will work as follows: the QETH11 will buy Ethereum in the open market and will take care of the custody of the assets using Gemini’s custody service.
The exchange-traded fund will allow investors to gain exposure to Ethereum in a safe and regulated environment without the need to actually buy the asset.
QR Asset Management said:
“The Brazilian investor now has the possibility of exposure to the two largest and most valuable digital assets in the world, in a regulated, simple and secure manner. It is no longer necessary to register in exchanges, create private keys or worry about secure custody, since the fund has institutional-level custody in deep cold storage , provided by Gemini – a company specializing in the custody of crypto assets founded by the Winklevoss twins – a service not very accessible to the common investor”.