• Brazil Has Launched Its First Environmentally Friendly Bitcoin ETF (BITH11)

  • Brazil continues to make strides in developing new cryptocurrency investment opportunities. It launched its third cryptocurrency ETF with a green twist this week.

    The Hashdex Nasdaq Bitcoin Reference Price, denoted by the ticker BITH11, replicates the performance of the Nasdaq Bitcoin Reference Price Index.

    This would be the second ETF available in Brazil offering 100 percent exposure to Bitcoin, competing with the recently approved QR CME CF Bitcoin Reference Rate or QBTC11.

    Brazil Now Has a Bitcoin ETF That Is Eco-Friendly

    However, Hashdex’s proposal differs from that of its QR Assets-managed competitor. It aims to offset the carbon footprint of Bitcoin investments.

    The so-called First Green Bitcoin ETF in Brazil will use audits conducted by Germany’s Crypto Carbon Ratings Institute (CCRI) to determine the environmental impact of BITH11 investments, allowing it to invest 0.15 percent of its liquid assets in carbon credits and eco-friendly technologies each year.

    The importance of this initiative was highlighted by Rogerio Santana, director of B3 (Brazil’s main stock exchange), who noted that, in addition to complying with the country’s legal regulations, BITH11 promotes a positive impact not only on the industry but also on the entire ecosystem. He was also proud to have one of the region’s most extensive cryptocurrency investment offerings.

    “The new ETF provides investors with exposure to the variations of the world’s leading digital asset, with all of its growth potential and value store, in a regulated, secure, and long-term manner… With the introduction of this ETF, we will also broaden B3’s offering of ESG products to the market.”

    As a result, this would be Hashdex’s second ETF. The first, HASH11, or Hashdex Nasdaq Crypto Index, replicates the performance of the Nasdaq Crypto Index (NCI), which tracks the performance of a theoretical basket of various cryptocurrencies such as Bitcoin, Ethereum, Chainlink, Bitcoin Cash, and Stellar Lumens.

    In addition to this offering, the first 100 percent Ethereum ETF has approved a few days ago. QR Assets manages the QR CME CF Ether Reference Rate, or QETH11, which tracks the price behavior of ETH via the CME CF Ether Reference Rate.

    As a result, Hashdex and QR have complete control of the Brazilian ETF market. The two investment firms have also placed the country at the top of the list of countries with the most diverse exposure to cryptocurrency ETFs.

    A Developing Crypto Ecosystem

    Brazil has a fairly strict regulatory system in place for crypto investments; however, the country is also undergoing major regulatory reform, thanks in part to its regulatory sandbox. A growing ecosystem of service providers has also washed the face of the entire cryptocurrency industry.

    Services such as Z.ro Bank, Alter, and Uzzo Pay provide users with a free bank account as well as the ability to buy and sell Bitcoin at market prices. Users can also pay with prepaid credit cards that are loaded with funds from their bank accounts.

    In addition, the popularity of crypto exchanges has increased. Despite the resignation of its country manager, Binance has consolidated as the top choice, but other services such as Biscoint, Mercado Bitcoin, Ripio, and Satoshitango are also expanding as interest in cryptocurrency grows.

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