by A modern Bitcoin (BTC) ETF was unveiled in Brazil by Galaxy Digital in coalition with Itau Asset Management. The agenda for such teamwork was to invent an extensive lineup of corporal crypto ETFs in Brazil. Trading on the modern BTC ETF will commence on November 10 through the B3 stock exchange.
Aside from the modern BTC ETF, the company will presumably strive to introduce Ethereum-based ETF to Brazil. The firm’s general head of asset management, Steve Kurz, revealed that the company seeks ways of diversifying its strategies. The company looks forward to annexing opportunities in Europe and Asia for maximum innovation.
Why Brazil Needs Bitcoin ETF
Kurz said, ” With the current institutional growth of the crypto marketplace, blue-chip institutions have a significant function to perform. They need to collaborate with larger organizations that lack the techniques to create crypto products.” He further described Brazil as Cradle for massive crypto adoption.
Galaxy Digital’s coalition with Itau Assets Management was unveiled after the presentation of the company’s Q3 report. The company recorded a net loss of $68 million in the third quarter (Q3) report. Meanwhile, the rate of the company’s net loss in Q3 cannot be compared with its net loss in Q1 and Q2.
The company has also allied with CI Global Asset Management to initiate blockchain technology and Metaverse ETFs. The Toronto Stock platform was used to unveil and trade blockchain and Metaverse ETFs on May 12, 2022.
Will the US Support Spot BTC ETF?
The United States(US) securities and Exchange Commission has rejected numerous applications for BTC ETF in the country. One of the companies that have applied is Itau Asset Management. The firm controls over $165 billion value of assets, and it operates in 18 countries with over 65 million clients.
Meanwhile, QR Asset Management, a Brazilian firm, was the first institution to create a provincial BTC ETF in 2021. With its success, other institutions, such as Hashdex, launched their ETF. Despite the rate of BTC ETF demand in the American crypto market, the need for spot BTC ETF remains solitary.
However, the current market crash experienced in the crypto market will discourage the creation of ETFs.
