While the U.S. awaits approval for a spot bitcoin exchange-traded fund (ETF), Brazil’s market has demonstrated significant demand for such instruments, with total assets under management (AUM) reaching $96.8 million as of November 21.
Hashdex’s Nasdaq Bitcoin Reference Price FDI (BITH11) is the leader, holding $57.8 million in AUM, representing approximately 60% market share. In contrast, Brazil’s largest ETF, iShares Ibovespa Index (BOVA11), has $2.41 billion in AUM, highlighting the growing popularity of bitcoin ETFs in the country. Marcelo Sampaio, CEO of Hashdex, attributes this success to favorable digital asset regulations and increasing institutional interest.
The positive sentiment among sophisticated investors and the growing consideration of crypto in institutional portfolios contribute to the success of bitcoin ETFs in Brazil. Hashdex, with a spot bitcoin ETF trading since August 1, 2021, has also submitted applications for similar ETFs to the U.S. Securities and Exchange Commission (SEC). Other providers in Brazil include Itaú Asset Management, in collaboration with Galaxy Digital, and QR Capital, with $36 million in AUM. Gui Silva of Tagus Capital notes that low fees, ranging from 0.5% to 1.5%, contribute to the strong appetite for ETF investing in Brazil, with approximately one-third of investors allocating funds to crypto ETFs last year.
