Brazil just made history in the realm of cryptocurrency. Official approval of the world’s first spot XRP exchange-traded fund (ETF) has been granted by the Comissão de Valores Mobiliários (CVM), the nation’s securities regulator. With the help of Brazil’s B3 stock market, investors will be able to have exposure to XRP (XRP-USD) through the Hashdex Nasdaq XRP Index Fund ETF without having to buy and hold the cryptocurrency themselves.
“XRP is a natural choice for an ETF due to its real-world utility, growing institutional demand, and its overall market cap,” said Silvio Pegado, Managing Director of Ripple in Latin America, according to Portal do Bitcoin.
The decision has caused a stir in the worldwide cryptocurrency market. For other regulators throughout the world, this has established a precedent. Although the exact launch date is yet unknown, Hashdex has stated that further information would be released shortly.
XRP Price Surges 7% on ETF Approval
The market reacted without hesitation. According to Portal do Bitcoin, XRP’s price surged 7% in a single session after the ETF announcement on February 19, rising from $2.5590 to $2.7408 before a minor correction to $2.68 the following day.
Investor anticipation has also improved as a result of the ETF clearance; many anticipate that XRP will be more widely accepted by institutions as a valid asset class. Brazil’s action coincides with the ongoing legal struggle between Ripple and the U.S. Securities and Exchange Commission (SEC). Ripple appears to be grappling with both successes and losses.
Will Other Countries Follow Brazil’s Lead?
Other countries may be encouraged to investigate such regulated investment products as a result of Brazil’s acceptance of the first spot XRP ETF.
Wider use of XRP ETFs may improve XRP’s reputation with institutional investors, as Cointelegraph points out. Long-term price growth and ecosystem expansion may result from this.
The price of XRP is $2.6920 as of this writing.
