Bank of Brazil Becomes the First State-Backed Bank to Allow Customers Exposure to a Crypto ETF

Brazil’s first crypto ETF debut is postponed, but not because plans have failed whatsoever. The Bank of Brazil (Banco do Brasil) is now joining the bandwagon of ETF issuances, following the same steps as Bank Itaú and BTG Pactual did.

New Launch Date Set for April 26

According to a letter sent by Hashdex to its clients, the state-backed banking institution will be able to offer its customers the possibility of buying the crypto ETF of Hashdex, which will have the ticker “HASH11.”

That said, the Bank of Brazil’s customers could have exposure by investing in the fund, which will replicate the Nasdaq Crypto Index (NCI). The letter clarifies that the new date of the ETF debut is set to take place on April 26, 2021, as the original date was April 22.

With such maneuver, the banking institution becomes the first public bank in the world to offer such kind of exposure.

Subscription orders can be made until April 20, according to Hashdex, and the only ones who can be able to do it are authorized agents “who can do this on their own behalf or behalf of customers.”

The Hashdex Nasdaq Crypto Index (HASH11) – coordinated by Itaú, BTG Pactual, and Genial – is composed of crypto assets such as bitcoin (BTC), ethereum (ETH), litecoin (LTC), chainlink (LINK), bitcoin cash (BCH), and Stellar (XLM).

HASH11 to Be Traded on the Brazil Stock Exchange

Overall, the inception of the crypto ETF into the Brazilian market supposes another hurdle passed in terms of crypto adoption. Strict regulatory rulings by the CVM (Securities and Exchange Commission) restrict small investors from exposure to the crypto market due to the “high risks” it possesses.

Moreover, the Hashdex 100 fund offered in Brazil is also restricted to professional investors that hold over 10 million Brazilian real ($1.79 million) in financial markets investments.

After the official launch on April 26, 2021, HASH11 will be traded through the Brazil Stock Exchange.

What are your thoughts on the announcement? Let us know in the comments section below.

Source: news.bitcoin.com