While Bitcoin spot ETFs (exchange traded funds) are awaited approval in the United States, a study in Brazil, where Bitcoin ETFs have been trading for more than two years, found significant demand for Bitcoin ETFs.

The total Bitcoin ETF has nearly $100 million in assets under management.

The Bitcoin ETF as a whole has assets under management of $96.8 million (approximately 14.52 billion yen, converted at 150 yen to the dollar) as of November 21. This is led by Hashdex’s Nasdaq Bitcoin Reference Price FDI (BITH11), with assets under management of $57.8 million as of November 21st, and a market share of approximately 60%. %. In terms of size, Brazil’s largest ETF, the iShares Ibovespa Index (BOVA11), has assets under management of $2.41 billion, while the second largest ETF, the iShares BM&FBOVESPA Small Cap (SMAL11), has $1.19 billion. For reference, America’s largest ETF, the SPDR S&P 500, is about $430 billion.

The success of Bitcoin ETFs in Brazil is a result of market-friendly digital asset regulation and growing interest in Bitcoin ETFs from major institutions, according to Marcelo Sampaio, founder and CEO of HashDex. It is said that

In an interview with CoinDesk, Sampaio said: “Positive sentiment is growing among the most sophisticated investors, some of whom have asset allocations and are considering adding crypto assets to their portfolios soon. “We are seeing increased interest among some major institutions.” Hashdex Bitcoin Spot ETF began trading on August 1, 2021.

HashDex also offers crypto index ETFs that cover Bitcoin (BTC), Ethereum (ETH), and other crypto assets, which attracts far more investment than the Bitcoin spot ETF, Sampaio said. explained. In total, HashDex’s crypto-related ETFs currently have approximately $500 million in assets under management.

HashDex is also one of the companies that has filed for a Bitcoin spot ETF with the U.S. Securities and Exchange Commission (SEC). Last week, the SEC delayed a decision on HashDex’s filing, as it has done for other filing companies.

High interest in Brazilian crypto asset ETFs

Other companies offering physical Bitcoin ETFs in Brazil include Itaú Asset, which launched the fund last year in partnership with Mike Novogratz’s crypto asset management firm Galaxy Digital. Management, and QR Capital, which launched a Bitcoin ETF in 2021.

Gui Silva, managing partner at Tagus Capital, said Brazilians have long had a strong interest in crypto ETFs, and the number of people investing in digital asset ETFs will continue to grow. He said he was deaf.

Mr. Silva said, “There are approximately 4 million investors with accounts on the Brazilian stock exchange B3, of which approximately 700,000 invest in ETFs. Last year, approximately one-third of investors invested in crypto assets. “I allocated funds to ETFs.”

Mr. Silva said that the reason there is a strong appetite for ETF investing in Brazil may be due to low fees. “ETF fees in Brazil range from 0.5% to 1.5%, which I think is low compared to other products on the market.” “I can do it,” he explained.

｜Translation and editing: Rinan Hayashi
｜Image: Agustin Diaz Gargiulo / Unsplash
｜Original article: Spot Bitcoin ETFs Have Almost $100M in AUM in Brazil, Led by Hashdex Offering