Brazil’s debut of the world’s first spot XRP exchange-traded fund (ETF) marks a pivotal moment in the global crypto market, reflecting both the country’s regulatory maturity and the region’s growing appetite for digital assets. The XRPH11 ETF, launched by Hashdex and trading on the B3 exchange, offers investors direct, regulated exposure to XRP without the technical hurdles of self-custody.
This move comes at a time when Latin America, and Brazil in particular, is rapidly asserting itself as a leader in crypto innovation and adoption. The launch not only signals Brazil’s intent to be at the forefront of regulated crypto investment products but also intensifies the spotlight on the United States, where regulatory uncertainty continues to delay similar offerings.
Brazil’s crypto market has seen explosive growth, with adoption rates surging as both retail and institutional investors seek alternatives to traditional finance. A recent survey found that nearly all Latin American investors plan to increase their crypto holdings in the coming year, with Brazil’s regulatory clarity playing a significant role in this optimism.
The approval of the XRPH11 ETF is emblematic of a broader shift in the region, where innovative financial products are being introduced to meet growing demand for secure, compliant access to digital assets. As the first country to offer a spot XRP ETF, Brazil is setting a precedent that could influence regulatory approaches and product development worldwide.
The launch of XRPH11 also reflects the global trend toward the mainstreaming of crypto ETFs, as investors seek diversified, regulated exposure to digital assets. With over 55 million crypto users in Latin America and a rapidly expanding market, Brazil’s move is likely to accelerate the integration of digital assets into traditional investment portfolios. This development not only benefits local investors but also positions Brazil as a model for other countries considering similar regulatory frameworks.
How the XRP ETF Works
The structure of the XRPH11 ETF is designed to provide investors with transparent, secure, and efficient access to XRP. Approved by Brazil’s Securities and Exchange Commission (CVM) in February 2025, the fund allocates at least 95% of its assets directly to XRP, closely tracking the Nasdaq XRP Reference Price Index. This index employs a multi-source, exchange-weighted methodology to ensure accurate and reliable pricing, mitigating the risks of market manipulation and price discrepancies that have plagued some unregulated crypto products.
Hashdex, a leading Latin American asset manager with a track record of innovative crypto products, partnered with Genial Investimentos to administer the fund. Genial Bank SA provides custody services, leveraging robust security protocols and regulatory compliance to safeguard the underlying assets. The ETF’s annual management fee of 0.7%, combined with a 0.1% custodian fee, results in a total expense ratio of 0.8%, making it competitive with both traditional and crypto-focused ETFs. This cost structure is particularly attractive given the added regulatory oversight and investor protections embedded in the product.
XRPH11 is the ninth crypto ETF from Hashdex to be listed on the B3 exchange, joining products that track Bitcoin, Ethereum, Solana, and diversified crypto portfolios. This expansion underscores the growing demand for regulated digital asset exposure in Brazil and the broader Latin American market. Hashdex’s experience in managing crypto ETFs and its collaboration with established financial partners have helped build investor confidence, further legitimizing the sector.
The fund’s launch required navigating Brazil’s comprehensive regulatory framework, which mandates strict compliance with anti-money laundering (AML) and know-your-customer (KYC) rules. Virtual asset service providers must obtain licenses and adhere to rigorous reporting and operational standards, ensuring that products like XRPH11 meet high thresholds for transparency and security. These requirements not only protect investors but also enhance the credibility of Brazil’s crypto market on the global stage.
Brazil As Crypto ETF Powerhouse
Brazil’s emergence as a crypto ETF leader is rooted in its balanced approach to regulation and innovation. The country’s regulatory authorities, including the Central Bank of Brazil (BCB), the CVM, and the Federal Revenue Service (RFB), have crafted a framework that supports both market growth and investor protection. This approach has allowed Brazil to move quickly in approving new financial products while maintaining robust oversight, a combination that has attracted significant interest from global asset managers.
The CVM’s proactive stance has enabled a diverse array of crypto ETFs to flourish, covering not only major assets like Bitcoin and Ethereum but also emerging tokens such as Solana and now XRP. This diversity reflects the evolving needs of Brazilian investors, who are increasingly seeking exposure to a broad range of digital assets. The regulatory clarity provided by Law No. 14,478, which established the “Legal Framework for Virtual Assets,” has been instrumental in fostering this environment, giving both issuers and investors the confidence to participate in the market.
Brazil’s crypto-friendly policies extend beyond ETFs. The country has embraced cryptocurrency for payments and investments, even as the Brazilian Real remains the official currency. The Central Bank has supported crypto mining and is piloting a Central Bank Digital Currency (CBDC), the Digital Real, to further expand financial access. These initiatives, combined with tax incentives for mining and clear guidelines for virtual asset service providers, have positioned Brazil as a regional hub for crypto innovation.
The rapid adoption of crypto in Brazil is also driven by macroeconomic factors. Investors are drawn to digital assets as hedges against inflation, currency devaluation, and economic uncertainty. The XRPH11 ETF provides a regulated vehicle for accessing these benefits, reducing the barriers to entry for both retail and institutional participants. As Brazil continues to lead in product innovation and regulatory clarity, it is likely to attract even more investment and talent, reinforcing its status as a crypto powerhouse.
Spot XRP ETFs in the US
Despite XRP’s deep roots in the United States and its status as one of the largest cryptocurrencies by market capitalization, U.S. regulators have yet to approve a spot XRP ETF. The Securities and Exchange Commission (SEC) has acknowledged multiple filings from major asset managers, including Grayscale and Franklin Templeton, but has not moved forward with approvals. This delay stands in stark contrast to Brazil’s proactive approach and has become a focal point in the ongoing debate over U.S. crypto regulation.
The SEC’s hesitancy is partly rooted in the complex legal history surrounding XRP and Ripple Labs. While a 2024 federal court ruling clarified that XRP itself is not inherently a security, regulatory ambiguity persists, particularly regarding its classification in secondary markets. This uncertainty has made U.S. regulators cautious, even as institutional demand for spot crypto ETFs continues to grow. Analysts estimate the probability of U.S. approval for a spot XRP ETF at over 70%, reflecting optimism fueled by recent legal developments and shifting regulatory attitudes.
In the meantime, the SEC has approved leveraged and futures-based XRP ETFs, but these products do not offer the same direct exposure or risk profile as a spot ETF. As Brazil and other countries move ahead with spot offerings, pressure is mounting on U.S. regulators to provide a clear path for similar products. The outcome of this regulatory debate will have significant implications for the global crypto market, potentially influencing the pace and direction of ETF innovation worldwide.
The U.S. delay is not occurring in a vacuum. Other jurisdictions, including Canada, Germany, and Switzerland, have already approved spot crypto ETFs for assets like Bitcoin and Ethereum. The absence of a U.S. spot XRP ETF is increasingly seen as an outlier, especially as global investor demand for regulated digital asset exposure continues to rise. The eventual approval of such a product in the U.S. could unlock significant capital flows and further legitimize XRP as an institutional asset.
Growing Appetite for Crypto ETFs
The launch of Brazil’s spot XRP ETF is part of a broader global trend toward the mainstreaming of crypto ETFs. Countries like Canada, Germany, and Switzerland have already established robust markets for spot Bitcoin and Ethereum ETFs, providing investors with secure, regulated access to digital assets. Brazil’s move to include XRP in this landscape signals a growing appetite for diversified crypto exposure, as investors seek alternatives to the dominant coins.
Institutional demand for spot crypto ETFs is being driven by the need for secure, compliant investment vehicles that eliminate the complexities and risks of direct token custody. This is particularly important in markets where regulatory uncertainty or infrastructure limitations have historically hindered adoption. The success of products like XRPH11 demonstrates that there is significant untapped demand for regulated exposure to a broader range of digital assets.
Latin America, in particular, has emerged as a hotbed of crypto innovation and adoption. The region’s crypto user base has grown rapidly, fueled by economic volatility, currency devaluation, and a desire for financial inclusion. Brazil’s leadership in launching new ETF products is both a response to and a driver of this trend, setting a benchmark for other countries to follow. As more jurisdictions move to approve spot crypto ETFs, the global market for digital asset investment products is likely to become more integrated and competitive.
Brazil’s approval and launch of the world’s first spot XRP ETF is a landmark achievement that underscores the country’s leadership in the evolving crypto landscape. The XRPH11 ETF, backed by regulatory clarity, institutional-grade management, and robust investor protections, sets a new standard for digital asset investment products. This milestone sends a clear message to global regulators: there is strong and growing demand for regulated, diversified crypto exposure, and proactive regulatory frameworks can unlock significant benefits for investors and markets alike.
Hashdex’s initiative is likely to inspire similar moves in other jurisdictions, particularly as competition intensifies to attract crypto capital and innovation. The eyes of the global crypto community remain on the United States, where the approval of a spot XRP ETF could catalyze further growth and legitimacy for the sector. In the meantime, Brazil’s pioneering approach serves as both a model and a challenge, demonstrating the transformative potential of thoughtful regulation and product innovation in the digital asset space.