The world’s first XRP cryptocurrency exchange-traded fund (ETF) is set to begin trading this Friday on B3, the Brazilian stock exchange. The fund is launched by crypto asset manager Hashdex and managed by Genial Investimentos. It will trade under the ticker XRPH11 and will track the Nasdaq XRP Reference Price Index.
This development is a significant milestone for Ripple’s native asset, the fourth-largest cryptocurrency by market capitalization. Notably, this launch occurs in Brazil rather than the United States. The US is where Ripple is headquartered and where several asset managers have filed applications for similar products with the SEC.
First XRP ETF goes live in Brazil
The newly launched XRP ETF in Brazil is trading under the ticker XRPH11. It aims to provide investors with exposure to the crypto’s movements through a regulated exchange-traded product. According to Hashdex, the fund will invest at least 95% of its assets in the asset through various means.
These investment approaches include direct purchases of the cryptocurrency. In addition, it includes indirect investment via other financial products, futures contracts designed to replicate the profitability of the underlying index, and other investment vehicles that reflect the Nasdaq Reference Price Index. This structure allows both retail and institutional investors to gain exposure to the asset without directly holding the cryptocurrency themselves.
The Brazilian XRP ETF becomes the ninth ETF launched by Hashdex on the B3 exchange. It is also the company’s other cryptocurrency-focused products. As noted by Samir Kerbage, Hashdex CIO, “XRP11 is part of Hashdex’s line of mono-asset funds, such as ETFs BITH11, ETHE11 and SOLH11.” These other funds provide exposure to Bitcoin, Ethereum, and Solana, respectively.
XRP price reaction to the ETF news
Even though this is a major announcement for XRP holders, the Ripple price hasn’t shown any major move in the last 24 hours. The coin is trading at $2.2 at press time, with just an 0.8% rise during this period.
There has also been rising speculation on how high Ripple’s coin can rally following an ETF approval in the US.
The fund will be available to all investors with access to the Brazilian stock exchange. However, Kerbage indicated that the target audience consists primarily of more sophisticated market participants. “The focus of these ETFs is sophisticated investors, such as institutional investors who want to build crypto portfolios on B3,” Kerbage stated in his statement to Valor.
The launch in Brazil comes at a time when Ripple’s coin-related investment products in the United States remain limited. Despite recent progress in settling regulatory disputes with the SEC, US investors currently have access only to a leveraged XRP ETF. As per the recent developments, Ripple coin and Solana are leading the ETF race right now.
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