Brazil has made history by approving the world’s first XRP spot ETF, marking a significant step for Ripple and the global cryptocurrency market. This allows institutional investors to gain direct exposure to XRP through traditional financial markets.
Brazil Approves First-Ever XRP Spot ETF
Brazil’s Securities and Exchange Commission (CVM) has officially approved the Hashdex NASDAQ XRP Index Fund, making it the first exchange-traded fund (ETF) that directly holds XRP. The ETF will trade on B3, Brazil’s main stock exchange, with Genial Investimentos serving as the fund administrator. While the official launch date is yet to be announced, Hashdex has confirmed the approval and will soon release trading details. According to Silvio Pegado, managing director of Ripple in Latin America, XRP’s strong real-world utility, rising institutional demand, and large market cap made it a natural choice for an ETF.
Why This Approval Matters
1. Institutional investors can now buy XRP through a fully regulated investment vehicle. Instead of dealing with crypto exchanges, wallets, or private keys, investors can now gain exposure to XRP through a traditional stock exchange.
2. Brazil leads while the U.S. lags. Brazil has introduced Bitcoin, Ethereum, Solana, DeFi, Web3, and metaverse ETFs through Hashdex. Meanwhile, in the U.S., the Securities and Exchange Commission (SEC) has yet to approve an XRP spot ETF, despite multiple applications from asset managers like CoinShares, Bitwise, 21Shares, and Grayscale.
3. XRP’s market cap and institutional interest. XRP is currently the third-largest cryptocurrency, with a market cap of $155 billion, trailing only Bitcoin and Ethereum. With institutional investors now able to enter the market through a spot ETF, demand for XRP could rise.
Could the U.S. Be Next?
The SEC has recently approved Bitcoin and Ethereum spot ETFs, signaling a potential shift in its approach to crypto investments. However, XRP remains a complex case due to its past legal battles with the SEC. Nevertheless, the U.S. SEC has recently acknowledged a spot XRP ETF filing from Cboe BZX Exchange on behalf of Canary Capital, following similar filings from 21Shares, Bitwise, Grayscale, and CoinShares. According to JP Morgan analysts, spot XRP and Solana ETFs could attract up to $14 billion in investments within their first year if approved in the U.S., potentially driving the next wave of institutional crypto adoption.
The approval of the world's first XRP ETF in Brazil highlights the cryptocurrency's global importance, offering new opportunities for institutional investors and underscoring the growing role of cryptocurrencies in the financial world.
