Brazil launches its first eco-friendly Bitcoin ETF (BITH11)

Brazil continues to make strides in creating new investment opportunities related to cryptocurrencies. This week it launched a brand new Bitcoin ETF – with a green twist.

Under the ticker BITH11, the Hashdex Nasdaq Bitcoin Reference Price replicates the performance of the Nasdaq Bitcoin Reference Price Index.

Again, this would be the second ETF available in Brazil that offers 100 percent exposure to Bitcoin and would compete with the also recently approved QR CME CF Bitcoin Reference Rate or QBTC11.

Brazil has a new eco-friendly Bitcoin ETF

However, Hashdex’s proposal is different from that of its QR Assets managed competitor. The aim is to neutralize the CO2 emissions from Bitcoin investments.

The so-called First Green Bitcoin ETF in Brazil will use audits from the German Crypto Carbon Ratings Institute (CCRI) to determine the environmental impact of BITH11 investments, allowing it to invest 0.15% of its cash in carbon credits and green technologies every year .

Rogerio Santana, Director of B3 (Brazil’s most important stock exchange), emphasized the importance of this initiative and stated that BITH11, in addition to complying with the legal requirements of the country, promotes a positive impact not only on the industry, but also on the entire ecosystem. He also prided himself on having one of the most extensive cryptocurrency investment offerings in the entire region.

“The new ETF offers investors regulated, safe and sustainable exposure to the variations of the world’s leading digital asset with all its growth potential and store of value … With the introduction of this ETF, we will also expand the range of B3 ESG products available to the market to stand.”

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

In addition to this offer, the first 100% Ethereum ETF was also approved a few days ago. The QR CME CF Ether Reference Rate or QETH11 is managed by QR Assets and tracks the price behavior of ETH via the CME CF Ether Reference Rate.

This is how Hashdex and QR Assets control the Brazilian crypto ETF market. The two investment firms have also positioned the country on the podium of the places with the most diverse exposure to cryptocurrency ETFs.

A growing crypto ecosystem

Brazil has a pretty strict regulatory system when it comes to crypto investments, but the country is also undergoing major regulatory reform right now thanks to its regulatory sandbox. Plus, a growing ecosystem of service providers has washed the face of the entire crypto industry.

Services like Bank, Alter, and Uzzo Pay allow users to have a free bank account with the option to buy and sell Bitcoin at market prices. Users can also pay with prepaid credit cards using the money from their fiat accounts.

A Visa card from the Brazilian Bitcoin bank “Alter”. Image: Alter Bank

The popularity of crypto exchanges has also increased. Binance is now consolidated as the first choice despite the resignation of its country manager, but other services such as Biscoint, Mercado Bitcoin, Ripio and Satoshitango are expanding with the rising interest in crypto.

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