Tuesday, August 16

Brazil stock exchange, top 20 in the world, to add bitcoin ETF after success in 2021

Key facts:
  • For the president of the B3 exchange, it is natural that he will seek to enter even more in this market.

  • They plan to tokenize assets and offer consulting for investors interested in bitcoin.

B3, the official and largest stock exchange in Brazil, plans to include bitcoin and other cryptocurrency-related products by 2022. Other proposals include investment advisory, custody of digital assets, and ETFs. ). This last product would be added to others of its kind already existing in the country and which have been very successful.

The consolidation of the bitcoin and cryptocurrency market in the Brazilian institutional sphere has considerable relevance for the region. B3, whose headquarters are located in Sao Paulo, is considered one of the 20 bags more important of the world; with a capitalization of 938,000 million dollars by the end of 2020.

As reported by the Brazilian media InfoMoney, the interest in increasing cryptocurrency services was confirmed by the president of the financial institution himself. The expansion into that market, despite not being regulated yet, “is natural”, according to the president of the exchange, Gilson Finkelsztain. In this sense, it should be noted that in Brazil a bill to regulate cryptocurrencies will be discussed next year. The proposal has already been approved by the Chamber of Deputies.

Anyway, the businessman was in charge of clarifying that the idea “is not to create a cryptocurrency exchange, but to enter that market to offer products for those who negotiate with cryptocurrencies.”

In this sense, some of the proposals analyzed by B3 include custodial and investment advisory services, DVP (delivery versus payment), access to liquidity and tokenization of assets, among others.

Bitcoin and ether ETFs in Brazil

On the other hand, regarding the possible launch of an ETF, it was detailed that they are analyzing which index will replicate. This would not be the first product of this style in Brazil. As CriptoNoticias reported, in March 2021 the first bitcoin ETF in Latin America was launched in that country, and even a few months later one of Ethereum was already being traded.

Exchange traded funds have performed well to Brazilian investors. As reported the cited medium Previously, cryptocurrency ETFs lead the ranking of those with the best performance during the year.

Bitcoin and Ethereum ETFs lead among the highest performing of their kind as of November 2021. Source: Economatica / infomoney.com.br

One of them, that of QBTC11 (based on bitcoin) generated profits of more than 100% until the end of November. For its part, the aforementioned QETH11 had a return of more than 76%, while two other ETFs (ETHE11 and BITH11) exceeded 58% in profits.


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