Brazil Set to Launch World’s First Spot XRP ETF

Digital asset manager Hashdex has received approval from the Brazilian Securities and Exchange Commission (CVM) to introduce an XRP spot exchange-traded fund (ETF) in Brazil. This marks the first ETF globally to have XRP, the native asset of the XRP Ledger developed by Ripple, as its primary investment component.

CVM Approves XRP ETF

According to the CVM’s website, the HASHDEX NASDAQ XRP INDEX FUND was registered on December 10, 2023, and is currently in its pre-operational phase. Genial Investimentos, a brokerage firm, has been assigned as the administrator. However, no additional documents with specific details have been attached yet.

Hashdex confirmed to Portal do Bitcoin that the CVM has approved its XRP ETF. While an official launch date on B3, the Brazilian stock exchange, has not been set, the company assured that more details regarding trading will be announced soon.

XRP’s Institutional Demand and ETF Potential

XRP’s presence in institutional markets continues to expand, further cementing its standing among leading digital assets. With a market capitalization of $152 billion, XRP ranks as the third-largest cryptocurrency, following Bitcoin and Ethereum.

“XRP is a natural choice for an ETF due to its real-world utility, growing institutional demand and its overall market cap,” said Silvio Pegado, managing director of Ripple in Latin America.

He further noted that Brazil’s approval of one of the first Bitcoin ETFs in 2021 and the launch of the XRP ETF reflect the country’s commitment to financial innovation. Pegado also added that regulatory frameworks and public discussions reinforce Brazil’s role in advancing the crypto sector.

Meanwhile, in the United States, several XRP ETF proposals are under regulatory review. These include the Rex-Osprey XRP ETF, the Canary XRP ETF, and the 21Shares Core XRP Trust.

While it remains uncertain whether these funds will gain approval, shifts in the regulatory landscape under the Trump administration suggest that the chances of approval may be improving. If approved, JP Morgan analysts estimate that XRP ETFs could collectively attract between $3 billion and $6 billion in capital.