The XRP community reached a major milestone as Brazil’s Securities and Exchange Commission (CVM) approved the world’s first spot XRP exchange-traded fund (ETF). This development marks a significant step toward institutional adoption of XRP, reinforcing its legitimacy in global financial markets.
According to reports from local sources, the approval was granted to Hashdex, making Brazil a pioneer in regulated cryptocurrency investment products. The fund, known as the HASHDEX NASDAQ XRP INDEX FUND, was originally established on December 10, 2024, and is currently in its pre-operational phase.
Brazil Strengthens Crypto Adoption with XRP ETF
The Hashdex XRP ETF will be managed by Genial Investimentos, a leading financial institution in Brazil. While an official launch date has yet to be announced, Hashdex has confirmed that further details on listing and trading on Brazil’s stock exchange, B3, will be shared soon.
This move aligns with Brazil’s broader approach to embracing cryptocurrency-based financial products. The CVM’s decision follows the approval of the Hashdex Nasdaq XRP Index Fund in late 2024, reinforcing the country’s commitment to providing regulated investment opportunities in digital assets.
Although the CVM has yet to outline a clear timeline for the ETF’s debut, Hashdex has assured investors that updates will be forthcoming.
Institutional Interest and XRP’s Market Impact
The introduction of a spot XRP ETF is expected to attract both institutional and retail investors, allowing them to gain exposure to XRP in a regulated environment. Given XRP’s strong presence in cross-border transactions and financial services, institutional interest in the asset has been steadily increasing.
Following the ETF’s approval, XRP’s price surged by 4.82%, reaching $2.69. The market capitalization of XRP has now climbed to $155.94 billion, making it the third-largest cryptocurrency, behind Bitcoin and Ethereum.
“XRP is a natural fit for an ETF due to its real-world applications, growing institutional demand, and significant market cap,” said Silvio Pegado, Managing Director of Ripple Latin America. He also praised Brazil’s visionary stance on digital assets, noting that the CVM’s decision positions the country as a leader in crypto adoption.
Could the U.S. Follow Brazil’s Lead?
The approval of the world’s first XRP ETF could influence other major markets, particularly the United States, where multiple companies have submitted applications for XRP-based ETFs.
Several financial firms, including Rex-Osprey, Canary, and 21Shares, are seeking approval for similar XRP ETFs in the U.S. Additionally, the U.S. SEC has acknowledged Bitwise’s XRP ETF filing, categorizing it under ‘Commodity-Based Trust Shares’.
The Cboe BZX Exchange has also proposed listing shares of the Bitwise XRP ETF, while asset management firms like WisdomTree and 21Shares continue their push for regulated XRP investment vehicles.
The SEC now has up to 240 days from the publication of these filings in the Federal Register to either approve, reject, or request modifications. The decision on these U.S.-based XRP ETFs could have a major impact on institutional adoption and XRP’s long-term market position.
Conclusion
Brazil’s approval of the first-ever spot XRP ETF solidifies its position as a progressive force in cryptocurrency regulation. As the global demand for digital asset investment products grows, the possibility of XRP ETFs in the U.S. and other major markets remains a key area of interest.
With institutional adoption on the rise, investors will closely monitor regulatory decisions that could further shape XRP’s role in the global financial system.
Anthony Pedro
Anthony Pedro is a seasoned crypto writer with a deep passion for blockchain technology and digital currencies. With over 4 years of experience in the cryptocurrency space, Anthony has become a trusted voice, offering insightful analysis and commentary on the latest trends, innovations, and market movements. When not writing, he is actively engaged in the crypto community, attending conferences, advising blockchain startups, and experimenting with new projects.