Bitcoin ETFs in Brazil: pressure mounts on the SEC

Bitcoin ETFs in Brazil: Pressure on the SEC is mounting

After the Bahamas and Canada, now Brazil. The number of trading venues for Bitcoin ETFs is on the rise. Now it is up to the SEC to recognise the signs of the times.

Once again, there is news to report regarding Bitcoin ETFs. The Brazilian Securities and Exchange Commission (CVM) approved two new cryptocurrency ETFs this week. One of them is 100 per cent based on Bitcoin. The other is made up of five other Bitcoin Cycle cryptocurrencies. According to QR Asset Management, the issuer of the bitcoin-only ETF, the project could accelerate the launch of a similar fund in the United States. This is because the Brazilian CVM is part of the International Organization of Securities Commissions (IOSCO), as is the US Securities and Exchange Commission (SEC).

Both ETFs are traded on the Brazilian stock exchange, the B3. According to Brazil Journal, two of the country’s main banks, Itaú and BTG Pactual, have already declared their intention to offer Hashdex’s blended ETF to their clients. The minimum funding for this offering is 250 million reals, the equivalent of 38.28 million euros. However, as there is no upper limit, investors are expected to raise a significantly higher amount. This is what people familiar with the matter told the Brazil Journal.

Hashdex’s ETF will track the Nasdaq Crypto Index (NCI), an index developed by Nasdaq and Hashdex. Brazil’s Hashdex received approval from the Bermuda regulator in September 2020. It approved the world’s first bitcoin ETF – the Hashdex Nasdaq Crypto Index ETF – on the island nation together with Nasdaq.

When will the SEC allow the Bitcoin ETF?

In view of this development, pressure is naturally also mounting on the US Securities and Exchange Commission (SEC) to finally allow a Bitcoin ETF in the US as well. The number of applicants is growing steadily. The latest attempt comes from First Trust Advisors and SkyBridge Capital. The latter is the hedge fund of former White House communications director Anthony Scaramucci.

In a Form S-1 filing with the SEC, the companies have requested to offer the „First Trust SkyBridge Bitcoin ETF Trust.“ First Advisor would be the adviser for the ETF, while SkyBridge would serve as the sub-adviser. The form applies to trade the shares on the NYSE Arca.

Given the prominence of the applicants, many experts speculate that under new SEC chief Gary Gensler, it will finally be this year that a Bitcoin ETF will be traded on a US exchange. In addition to SkyBridge, WisdomTree, NYDIG, Valkyrie and VanEck, to name but a few, have also applied for a Bitcoin ETF.