Brazil just made crypto history. The country’s securities regulator, Comissão de Valores Mobiliários (CVM), has officially approved the world’s first spot XRP exchange-traded fund (ETF). Named the Hashdex Nasdaq XRP Index Fund, the ETF will allow investors to gain exposure to XRP (XRP-USD) through Brazil’s B3 stock exchange without having to purchase and store the cryptocurrency directly.
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According to Portal do Bitcoin, Silvio Pegado, Managing Director of Ripple in Latin America, highlighted that “XRP is a natural choice for an ETF due to its real-world utility, growing institutional demand, and its overall market cap.”
The move has sent ripples (pun intended) across the global crypto industry. This has set a precedent for other regulators worldwide. While the launch date remains uncertain, Hashdex has confirmed that further details will be announced soon.
XRP Price Surges 7% on ETF Approval
The market didn’t hesitate to respond. Following the ETF announcement on February 19, XRP’s price jumped 7% in a single session, climbing from $2.5590 to $2.7408 before slightly correcting to $2.68 the next day, according to Portal do Bitcoin.
The ETF approval has also stimulated investor optimism, with many expecting increased institutional adoption of XRP as a legitimate asset class. Brazil’s move comes at a time when the U.S. Securities and Exchange Commission (SEC) continues to battle Ripple in court. It seems like Ripple is dealing with some wins and some losses.
Will Other Countries Follow Brazil’s Lead?
Brazil’s approval of the first spot XRP ETF could set off a domino effect, whereby other nations could be prompted to explore similar regulated investment products.
As Cointelegraph notes, wider adoption of XRP ETFs could strengthen XRP’s standing among institutional investors. This could drive long-term price appreciation and ecosystem growth.
At the time of writing, XRP is sitting at $2.6920.
