The cryptocurrency ETFs launched in Brazil in 2021 lead the year’s valuations, according to a survey released by the portal economics on Monday (30). No fewer than four ETFs from that market are on the list.
Leading the list is QR Bitcoin (QBTC11), launched by QR Asset Management. This was the first 100% Bitcoin (BTC) ETF in Latin America, released on June 22nd. The fund has appreciated 108% since launch.
Then comes QETH11, also from QR Asset and ETF 100% backed by Ether (ETH). The fund, launched on August 4, has accumulated a return of 76.12% since then.
Next comes the ETFs from Hashdex, ETHE11 and BITH11, which invest in ETH and BTC, respectively. According to Economatica, the two funds achieved profitability of 59.03% and 58.72%.
Manager celebrates numbers
This cut is significant considering the number of ETFs that were launched in 2021. According to the study, in March 2021, there were 75 ETFs listed in B3, 36 of which were Brazilian and 39 were international. Now, in the 4th quarter of 2021 (until 11/25), there are already 148 ETFs listed on the B3, of which 61 are Brazilian and 87 are foreign.
In other words, cryptocurrency ETFs managed to prosper even in the face of intense competition. The big difference is that cryptocurrencies are a new asset class within the exchange.
On the other hand, the appreciation of cryptocurrencies such as BTC and ETH served as “advertisement” for the new ETFs. According to Alexandre Ludolf, investment director at QR Asset, ETFs facilitated the purchase of cryptocurrencies for newcomers to the market.
“The good performance of assets in the year is due to the flourishing of this asset class, with the entry of different user and investor profiles. Overall, it was revolutionary for the market to have regulated, highly liquid and easily accessible products. Nowadays, any citizen with access to a home broker can be exposed to this asset class for less than R$100”.
Unlike ETFs approved in the United States, Brazilians buy cryptocurrencies directly. QBTC11 has 826.26 BTC in custody, or around R$271.9 million, while QETH11 has 8,645 ETH (R$230.1 million).
In practice, investing in one of these funds is like acquiring both cryptocurrencies indirectly. Therefore, it is a more practical exhibition for newcomers to the market. In a year in which the BTC appreciated by more than 110%, the funds achieved excellent timing and success.
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