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The fund, which will trade on Brazilâs B3 stock exchange, uses custodial services provided by the Winklevoss twinsâ United States-based Gemini.
Brazilâs ComissĂŁo de Valores MobiliĂĄrios (CVM), the countryâs securities regulator, has approved an Ether (ETH) exchange-traded fund (ETF), according to an announcement by QR Capital, the holding company of QR Asset Management.
The fund, which trades under the ticker QETH11, will trade on Brazilâs highly reputable B3 stock exchange, which operates as a regional exchange and serves customers worldwide. QETH11 will use the same Ether index as that used by CME Group and will use institutional custodial services provided by the Winklevoss twinsâ Gemini.
In its announcement, the fundâs issuer pitches the product as âa simple, safe and regulated option for any investor to gain direct exposure to Ethereum through their preferred brokerage, without worrying about registrations in exchanges, wallets or private keys.â QR Asset Management buys physical ETH for the product and pledges to assure a high level of transparency and security for QETH11 investors. Fernando Carvalho, CEO of QR Capital told Cointelegraph Brazil:
"Brazilian regulators are recognizing the maturation of the crypto market and understanding that it is important to offer regulated products to investors looking forward to exploring these new asset classes. We hope that these signals from Brazil will encourage the SEC to approve the first US crypto ETF."
News of the CVMâs green light follows hot on the heels of two earlier cryptocurrency ETF approvals this March, one 100% Bitcoin and the other comprising five cryptocurrencies, in addition to Bitcoin (BTC). Both are also traded on B3, and the Bitcoin-only product is similarly managed by QR Asset Management. It began trading under the ticker QBTC11 in late June.
Related:Â New Bitcoin ETF approved in Canada
One month prior, in February, Canadaâs Ontario Securities Commission gave the green light for the worldâs first physically settled Bitcoin ETF. Elsewhere, particularly in the United States, securities regulators are still delaying crypto ETF approvals despite consistent demand.
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