Brazil was one of the first countries to approve index funds (ETFs) with cryptoassets regulated by the traditional financial market. By August 2021 there were 5 ETFs with exposure to bitcoin and other cryptoassets being traded on the Brazilian stock exchange, B3.
According to a survey by Valor Investe, in just five months, these ETFs moved almost R$1.6 billion at B3. In this same period, nearly 160,000 people invested in cryptoassets through funds regulated by the Securities and Exchange Commission (CVM).
The approval and large volume of trading in cryptoassets through ETFs in 2021 represent the growth of institutional investment in the disruptive financial market.
In August 2021 alone, for example, R$1.6 billion was traded in cryptoasset ETFs in Brazil. The most-traded fund of the month was HASH11, an ETF representing a cryptoasset basket that mirrors the exposure of the Nasdaq Crypto Index.
With R$ 6.4 billion in recorded transactions, in August 2021 HASH11 ranked sixth in ETFs with the highest trading volume on the stock exchange, with 51 ETFs in total.
In contrast, HASH11 is the only cryptoasset ETF that showed a cumulative negative variation in 2021. As of August this year, HASH11 had a -0.56% change after being released in April.
On the other hand, the ETF called QBTC11 had the best variation among the cryptoasset funds traded through B3. With 100% exposure to bitcoin, the QBTC11 was launched in June and showed an upward variation of 80.28% until August 2021.
In addition to HASH11 and BTC11, the stock exchange trades other cryptoasset ETFs, such as the QETH11 and ETHE11 funds, with 100% exposure to ether (ETH).
Until August 2021, The QETH11 accumulated an upward variation of 38.68% in the market, while ETHE11 increased 19.49% in the same period.
Meanwhile, there is also the BITH11, another CVM-approved ETF in Brazil, but with 100% exposure in bitcoin. Launched in August 2021, the BITH11 ETF posted a return of 41.21% in just one month of trading on the market.