Brazil has made a breakthrough by approving the world's first spot ETF on XRP, which may have a significant impact on the cryptocurrency market.
Brazil Approves the XRP Spot ETF
Brazil's Securities and Exchange Commission has officially approved the Hashdex NASDAQ XRP Index Fund, making it the first ETF directly tied to XRP. The fund will trade on Brazil's main stock exchange, B3, with Genial Investimentos as the fund administrator. While the launch date is still pending, Hashdex has confirmed approval and will soon release trading details.
Why This Approval Matters
The XRP spot ETF offers a fully regulated investment vehicle for institutional and retail investors. Now, they can acquire XRP through a traditional exchange, avoiding the complexities of crypto wallets and private keys. Brazil has shown itself as one of the most crypto-friendly countries, already offering investment funds based on Bitcoin, Ethereum, Solana, and other digital assets. Meanwhile, the U.S. Securities and Exchange Commission has yet to approve a spot ETF on XRP, despite multiple applications from asset managers.
Could the U.S. Be Next?
Recently, the SEC approved ETFs for Bitcoin and Ethereum. However, XRP remains a complex case due to past legal battles with the SEC. Recently, there have been several applications for a spot ETF on XRP, and analysts expect that if such funds are approved in the U.S., they could attract up to $14 billion in investments in the first year. This could trigger a new wave of institutional interest in cryptocurrencies.
Brazil's approval of the XRP spot ETF underscores its leading position in the global cryptocurrency space. This move could significantly raise interest in XRP and encourage other countries to follow Brazil's example.
