The first XRP exchange-traded fund (ETF) in the world, managed by Genial Investimentos and issued by Hashdex, began trading on Brazil’s stock exchange, B3, on April 25. Tracked by the Nasdaq XRP Reference Price Index, the ETF listed under the ticker XRPH11 aims to allocate at least 95% of its net assets to XRP. This marks Hashdex’s ninth ETF launch on the Brazilian exchange and expands its single-asset offerings, which also include products based on Bitcoin, Ethereum, and Solana.
The asset manager may utilize direct or indirect holdings, futures contracts, or other financial instruments to reflect the price of XRP based on Nasdaq’s benchmark. Samir Kerbage, Hashdex’s chief investment officer, stated that the fund targets sophisticated investors, including institutions seeking to build crypto portfolios on Brazil’s equity market infrastructure. The ETF is designed to increase investor access while adhering to regulatory guidelines on fund safety and transparency.
As of April 18, XRP-related exchange-traded products (ETPs) had $950 million in assets under management (AUM), with XRP funds receiving the highest weekly inflows among other crypto-related ETPs, totaling $37.7 million. According to a prediction by JPMorgan in January, these products could potentially attract up to $8 billion in net flows, significantly exceeding their current AUM size. Despite Hashdex’s early success in this market, Brazil represents just 0.9% of the global AUM of crypto ETPs, highlighting the need for XRPH11 to appeal to a global audience in order to achieve a substantial AUM and establish Hashdex’s position in the industry.
Overall, the launch of the XRP ETF in Brazil signifies a significant milestone for Hashdex and Genial Investimentos, as they aim to leverage the growing interest in cryptocurrencies and provide investors with exposure to digital assets through regulated and transparent investment vehicles. With the potential for significant inflows and global expansion, XRPH11 has the opportunity to become a key player in the crypto ETP market, attracting both institutional and retail investors seeking diversified exposure to XRP and other digital assets in a regulated environment. As the crypto market continues to evolve and mature, the introduction of innovative investment products like the XRP ETF demonstrates the increasing mainstream acceptance and adoption of cryptocurrencies in traditional financial markets.
