Brazil Breaks New Ground with the World’s First XRP ETF
In a groundbreaking achievement for the cryptocurrency landscape, Brazil has unveiled the world’s first exchange-traded fund (ETF) that closely tracks the spot price of XRP, the native cryptocurrency of Ripple. Officially launched on April 25, this innovative financial product is now available on B3, Brazil’s main stock exchange, marking a significant milestone in digital asset trading.
This new fund, known as the Hashdex Nasdaq XRP Fundo de Índice (FI), is managed by the well-respected Brazilian asset manager Hashdex and is administered by Genial Investments Securities Brokerage SA. The guardian of the fund’s assets is Genial Bank SA, adding a layer of credibility to this pioneering venture.
Regulatory Approval: A Major Leap Forward
Achieving regulatory approval has been a critical part of this journey. The Brazilian Securities and Exchange Commission (CVM) provided the green light for the XRP ETF in February, following their earlier validation of Hashdex’s spot Solana ETF back in August 2023. This swift progression of approvals signals a growing acceptance of cryptocurrency investment products within the Brazilian financial ecosystem.
Once approved, the XRP ETF entered a pre-operational phase leading up to its launch under the ticker XRPH11. This fund is designed to reflect the XRP Reference Price Index (NQXRP), which captures the real-time spot price of XRP across major trading platforms.
Image Caption: Hashdex launches the groundbreaking XRP ETF in Brazil, paving new paths for cryptocurrency investment.
Investment Structure and Competitive Fees
One of the standout features of XRPH11 is its robust investment strategy. The fund commits to allocating a minimum of 95% of its nett assets to XRP and assets related to the crypto space. This prudent management ensures that investors’ funds are primarily directed towards the digital currency itself, enhancing exposure to XRP’s potential growth.
In terms of cost, XRPH11 has established a competitive fee structure, with a maximum annual management fee of 0.7% for administration and distribution, plus a custody fee capped at an additional 0.1%. Notably, the fund does not apply any structuring fees, making it an attractive option for investors keen on maintaining a lean investment cost.
With this launch, Hashdex significantly expands its footprint in the crypto ETF landscape, now offering nine products that also include mono-asset ETFs for other major cryptocurrencies like Bitcoin (BITH11), Ethereum (ETHE11), and Solana (SOLH11).
Why This Matters: Implications for Cryptocurrency Investors
The introduction of the XRPH11 ETF represents more than just a new investment vehicle; it showcases Brazil’s leadership in cryptocurrency regulation and innovation. This ETF not only provides a legal avenue for investing in XRP but also sets a precedent for other countries considering similar offerings. As the world watches Brazil’s approach, there’s hope that this could pave the way for broader adoption and regulatory clarity in the global cryptocurrency market.
The Ripple Effect: As U.S. Investors Wait in Anticipation
As Brazil strides ahead with its XRP ETF, the anticipation builds in the United States, where the SEC is carefully reviewing applications for similar products, including spot ETFs for Solana and XRP. These developments could significantly reshape the investment landscape, offering more mainstream options for institutional and individual investors alike.
Settlement Closure: The End of Ripple’s Legal Saga
In another pivotal development, the lengthy legal confrontation between Ripple Labs and the U.S. Securities and Exchange Commission has finally reached its conclusion after four arduous years. The SEC had previously accused Ripple of conducting an unregistered securities offering, amassing over $1.3 billion from XRP sales. Ripple firmly contested this, arguing that XRP should be classified as a digital currency rather than a security.
In a landmark July 2023 ruling, U.S. District Judge Analisa Torres struck a balanced verdict: while affirming that sales of XRP to institutional investors violated securities laws, she clarified that sales on public exchanges did not qualify as such. This nuanced ruling ended with Ripple facing a $125 million civil penalty, which was later settled in March 2025 for $50 million. Both Ripple and the SEC agreed to discontinue their appeals, bringing the ongoing litigation to a close.
Future Outlook: What Lies Ahead?
As Brazil takes the lead with the XRPH11 ETF, the market is left wondering about the ripple effects of such innovations. Will other countries follow suit? How will the developments in U.S. regulation shape the future of crypto ETFs? Investors are keenly watching for signs of progress from the SEC regarding spot ETFs, and the legal resolution between Ripple and the SEC marks a vital step toward a more transparent and regulated cryptocurrency marketplace.
Investors and enthusiasts are invited to join the discussion: What do you think about Brazil’s first XRP ETF, and how do you see the future of crypto ETFs evolving in your country? Share your thoughts below!