Brazil's Hashdex Leads with $100M AUM in Spot Bitcoin ETFs

• Bitcoin ETFs in Brazil Attract Hefty Demand
• Leading Bitcoin ETFs in Brazil
• Bitcoin ETFs in the US
• Success of Bitcoin ETFs in Brazil
• Hashdex's Crypto-Related ETFs
• Other Bitcoin ETF Providers in Brazil
• Increasing Interest in Crypto ETFs in Brazil
• Reasons for Popularity of ETFs in Brazil

Bitcoin ETFs in Brazil Attract Hefty Demand

As the United States still deliberates over the approval of a spot Bitcoin$42,260 -0.64% exchange-traded fund (ETF), Brazil has already seen a significant demand for such vehicles. These have been trading in the country for over two years, and collectively, these ETFs currently have $96.8 million assets under management (AUM) as of November 21.

Leading Bitcoin ETFs in Brazil

Bitcoin ETFs in the US

Success of Bitcoin ETFs in Brazil

According to Marcelo Sampaio, CEO and founder of Hashdex, the success of Bitcoin ETFs in Brazil is due to pro-market digital asset regulations and the increasing interest from large institutions in these products. Large institutions are showing positive sentiment towards these instruments and are considering adding crypto to their portfolios, driving the demand for these assets. Hashdex's spot Bitcoin ETF began trading on August 1, 2021.

Hashdex's Crypto-Related ETFs

Hashdex also offers a crypto index ETF that comprises Bitcoin, Ethereum$2,315 -2.42%, and other cryptocurrencies. This index garners more investment than the spot Bitcoin ETF. Hashdex's overall AUM for crypto-related ETFs currently stands at about $500 million.

Other Bitcoin ETF Providers in Brazil

Other providers of spot Bitcoin ETFs in Brazil include Itau Asset Management, which collaborated with Mike Novogratz's Galaxy Digital to launch a fund last year, and QR Capital, whose offering launched in 2021 and has $36 million in AUM, according to Hashdex's data.

Increasing Interest in Crypto ETFs in Brazil

Gui Silva, a managing partner at Tagus Capital, stated that the Brazilian public has traditionally shown high interest in crypto ETFs. He expects the number of investors in digital asset ETFs to continue growing. Approximately 4 million investors have accounts at the B3 stock exchange in Brazil, and around 700,000 of these invest in ETFs. Last year, about one-third of these investors allocated funds to crypto ETFs.

Reasons for Popularity of ETFs in Brazil

Low fees might be one reason for the high interest in ETF investing in Brazil. Silva notes that ETF fees in Brazil range from 0.5% to 1.5%, which is relatively low compared to other financial products in the market.

Edited by Jonathan Stoker