Brazil’s first plan to launch a cryptocurrency ETF was postponed, but this was not because the plan failed. Banco do Brasil is now joining the trend of ETF issuance, following the same steps as Itaú Bank and BTG Pactual.
The new release date is set for April 26
According to a letter sent to customers by Hashdex, this state-backed banking institution will be able to offer its customers the possibility to purchase the Hashdex cryptocurrency ETF, the stock trading code is “HASH11”.
In other words, customers of Brazilian banks can take risks by investing in the fund, which will replicate the Nasdaq Crypto Index (NCI). The letter clarified that the new date for the debut of the ETF is set for April 26, 2021, because the original date was April 22.
Through this operation, the banking institution became the first public bank in the world to provide such risk exposure.
According to Hashdex, the order is valid until April 20, and the only thing that can be done is to authorize agents “they can do this on their own behalf or on behalf of their customers.”
The Hashdex Nasdaq Crypto Index (HASH11) coordinated by Itaú, BTG Pactual and Genial consists of crypto assets such as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), chainlink (LINK), Bitcoin Cash (BCH) Composition) and Stellar (XLM).
HASH11 will be traded on the Brazilian Stock Exchange
In general, the premise for cryptocurrency ETFs to enter the Brazilian market is that they encounter another obstacle in terms of cryptocurrency adoption. Due to the “high risk” of CVM (Securities and Exchange Commission), its strict regulatory requirements limit its exposure to the cryptocurrency market.
In addition, the Hashdex 100 fund offered in Brazil is also limited to professional investors who hold more than 10 million Brazilian reals ($1.79 million) in financial market investments.
After the official launch on April 26, 2021, HASH11 will be traded through the Brazilian Stock Exchange.
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Picture Credits: Shutterstock, Pixabay, Wiki Commons, Bank of Brazil
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