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And Brazil has also made its move, bidding to become one of the world's leading financial centres in terms of advanced financial products based on Bitcoin and Ethereum. The latest news coming out of the South American country is the approval of the first Ethereum-based ETF, which received the green light from CVM, the SEC's counterpart in Brasilia.
This is good news for the market because the number of countries friendly to cryptocurrencies is growing, bucking the trend in other parts of the world, especially China, which has displaced the entire industry and is now forced to relocate.
This is not Brazil's first time in the cryptocurrency business. The country has already shown itself to be extremely progressive in approving several Bitcoin-based ETFs. What is different (and in its own way more important) is the news that arrives today because it was an ETF based on Ethereum, the world's second largest cryptocurrency by market capitalization, which is something that is still unthinkable in the US today.
Washington is lagging behind not only Europe, but also emerging economies such as Brazil.
The ETF will buy Ethereum directly through the intermediary Gemini - and will therefore take care of the custody of the tokens, offering, according to QR Asset Management (which is managing the fund), several advantages to investors.
Brazilian investors now have the opportunity to gain exposure to the world's two leading digital assets in a simple and secure way. There is no longer a need to register with exchanges, create private keys or worry about custody because the fund will have institutional-level custody in cold storage, offered by Gemini, a company that specializes in cryptoasset custody, a service not easily accessible to the small investor.
What does this mean for the future of Ethereum?
It means a lot, on many different levels. It means that we are dealing with an ETF that will buy the coins on the market by physical replication, and it means that a much wider audience will be able to invest in Ethereum.
We therefore remain convinced of our Ethereum forecasts, which report a much higher price than the one at which tokens are currently traded on the market. Not least because of what we believe to be, quite rightly, extraordinary news. After all, major groups such as Fidelity have already placed their bets on Ethereum.
Sources
https://cointelegraph.com/news/brazilian-securities-regulator-approves-ether-etf
DISCLAIMER
We are not giving any financial advice regarding cryptocurrencies, but rather giving applicable advice for new, intermediate and experienced people who are currently into cryptocurrencies or someone who is just now realizing what it is. Before you read this I must say that this blog will be based on the assumption that you have already done some research on cryptocurrencies and the Blockchain ecosystem. We will continue to provide explanations and details to the best of our ability, however we encourage you to do your OWN research because only YOU will know how this second financial revolution will best fit into your life. That said, I hope you are as excited as we are and thank you for reading our contents.