Brazil has made history by approving the world’s first XRP spot ETF, marking a milestone for Ripple’s native token and the broader cryptocurrency market.
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. This 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.
Why This Approval Matters
1. Institutional Investors Can Now Buy XRP
The XRP spot ETF provides a fully regulated investment vehicle for institutional and retail investors. 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 been one of the most crypto-friendly nations when it comes to regulatory approvals for digital asset ETFs. The country has already introduced Bitcoin, Ethereum, Solana, DeFi, Web3, and metaverse ETFs.
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. However, the U.S. SEC has recently acknowledged a spot XRP ETF filing from Cboe BZX Exchange on behalf of Canary Capital. This follows earlier acknowledgments of 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.
The approval of the world’s first XRP spot ETF in Brazil opens new opportunities for the cryptocurrency market and highlights the growing interest from institutional investors. While Brazil continues to strengthen its position in the crypto space, the U.S. still has decisions to make regarding the XRP ETF.
