Hashdex Unveils XRP ETF on Brazil’s Leading Stock Exchange

On April 25, Hashdex, a renowned asset management company, introduced the XRP spot ETF on Brazil’s prominent B3 stock exchange. This innovative financial product is marked by the ticker symbol XRPH11 and is designed to track the price of XRP through the Nasdaq XRP Reference Price Index.

The Brazilian Securities and Exchange Commission (CVM) had previously sanctioned the ETF in February, leading to its much-anticipated launch. The fund is structured to allocate a minimum of 95% of its assets directly into XRP, utilizing futures contracts and other financial instruments aligned with the Nasdaq Reference Price Index.

While Hashdex promotes the fund as the “Hashdex Nasdaq XRP Fund de Indices,” the fund’s management duties are entrusted to Genial Investimentos, with Genial Bank SA serving as the custodian.

Breaking Ground: The Debut of the First XRP Spot ETF in Brazil

Brazil has made history by launching the pioneering XRP spot ETF, now trading on the B3 stock exchange. Managed by Hashdex, the ETF aims to mirror XRP’s price via the Nasdaq XRP Reference Price Index. This significant development marks a pivotal moment in the global cryptocurrency landscape.

Cost Structure of the XRP ETF

The structure of this groundbreaking XRP ETF involves a total annual management cost of 0.8%, comprising a 0.7% management fee and a 0.1% custodian fee. Notably, there are no additional structuring fees levied on the fund. Hashdex has previously launched eight other cryptocurrency ETFs on the B3 exchange, reflecting Brazil’s burgeoning interest in digital currency investments.

Comparative Analysis: The US Lags Behind in XRP ETF Approval

The introduction of Brazil’s XRP ETF casts a spotlight on the United States, where an XRP spot ETF remains absent despite its substantial market interest. XRP, originating from a US-based company, stands as the third-largest cryptocurrency when excluding stablecoins, with a market capitalization exceeding $120 billion.

Ripple, the entity closely associated with XRP, has recently made strides in resolving regulatory issues with the US Securities and Exchange Commission. These advancements, along with the Trump administration’s ambition to position America as the “crypto capital of the world,” have fostered a more conducive atmosphere for cryptocurrency regulation in the US.

Rising Prospects for US XRP ETFs

Several major asset managers, including Grayscale and Franklin Templeton, have submitted proposals for XRP spot ETFs in the United States. Analysts currently estimate the likelihood of US approval for an XRP ETF at approximately 73%. Although a leveraged XRP ETF was recently introduced in the US, approval for a spot ETF remains pending. As Brazil spearheads such innovations, American regulators face increased pressure to approve similar investment vehicles, offering US investors a way to engage with XRP without direct ownership.

The strategic move by Hashdex signifies a landmark achievement for the integration of cryptocurrencies into mainstream financial markets. Brazil is now at the forefront of embracing the burgeoning realm of crypto ETFs.