The Bank of Brazil is the first state-backed bank to give customers exposure to a cryptocurrency exchange-traded fund (ETF).

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The launch of Brazil’s first crypto ETF has been delayed, but not due to any failure of planning. The Bank of Brazil (Banco do Brasil) is also trailing in the footsteps of Bank Ita and BTG Pactual and is issuing ETFs.

According to a letter sent to Hashdex’s clients, the state-backed banking institution will be able to sell its customers the option of purchasing Hashdex’s crypto ETF, which will trade under the ticker “HASH11.”

Customers of the Bank of Brazil, however, can gain exposure by investing in the stock, which will replicate the Nasdaq Crypto Index (NCI). The letter clarifies that the current date for the ETF’s debut is April 26, 2021, rather than April 22 as previously stated.

Through this manoeuvre, the financial company becomes the world’s first public bank to deliver such publicity.

According to Hashdex, subscription orders can be placed until April 20, and the only people who can do so are registered agents “who can do this on their own behalf or on behalf of customers.”

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The Hashdex Nasdaq Crypto Index (HASH11) is a crypto asset index organised by Ita, BTG Pactual, and Genial that includes bitcoin (BTC), ethereum (ETH), litecoin (LTC), chainlink (LINK), bitcoin cash (BCH), and Stellar (XLM).

HASH11 to Be Traded on the Brazil Stock Exchange

Overall, the introduction of the crypto ETF into the Brazilian market implies that another barrier to crypto acceptance has been overcome. Strict regulatory decisions by the CVM (Securities and Exchange Commission) exclude small investors from participating in the cryptocurrency industry due to the “high risks” it entails.

Furthermore, the Hashdex 100 fund available in Brazil is only available to experienced investors with more than 10 million Brazilian reals ($1.79 million) in financial market investments.

HASH11 will be traded on the Brazil Stock Exchange until its formal launch on April 26, 2021.


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