ETFs are funds for investment that are traded on the stock market, much like stocks. They track a particular index, such as the Ibovespa, enabling them to invest in multiple companies simultaneously.
ETFs have evolved by introducing cryptoactive ETFs, enabling investment in cryptocurrencies without purchasing them directly. QBTC11 is an illustration of such ETFs, tracking the value of Bitcoin.
B3 organized the ETF Week event in São Paulo on September 15 and 16 to showcase the latest developments in the ETF market.
BP Money attended the event and spoke with Murilo Cortina, who is the director of new business at QR Asset Management. With more than 7 years of experience in cryptocurrencies and a focus on blockchain technology.
View the complete interview.
Crypto ETFs in Brazil have become more popular lately. What is their function in making this asset class more accessible to the general public?
ETFs have become increasingly important, especially since 2024, with jurisdictions like the United States introducing crypto ETFs. In Brazil, we have had spot crypto ETFs since 2021. The key benefit of ETFs is their secure custody and low cost, often below 0.7% annually. This professional custody service, previously available only to large investors, is now accessible to everyone at a very affordable price, making ETFs a simple investment option.
What are the key distinctions between the Brazilian market and the international market regarding the evolution of crypto ETFs?
Brazil was ahead of schedule in introducing these ETFs, with QR Asset launching the world’s first Solano ETF. This demonstrates Brazil’s significant position in the global crypto ETF market. Despite this pioneering move, it is important to consider the difference in market size between Brazil and the US, with the latter having a much larger market. This size disparity significantly impacts the influence of Brazil within the crypto market.
Can ETFs eliminate the necessity for individual investors to purchase cryptocurrencies directly?
I believe that while cryptocurrencies are becoming more sophisticated with their interfaces, such as the Ethereum ETF (TH11) and Solano ETF (QSOL11), they will not completely replace traditional investments. ETFs now offer staking processes to customers, providing passive profitability without the need to directly operate on the blockchain. I anticipate that ETFs will continue to grow in popularity within this space, but I also believe that there is still a place for traditional crypto investments.
Do you think crypto ETFs function primarily as a long-term investment option for cryptocurrencies?
I don’t believe so. The ETF allows you to engage in tactical trading at your convenience, particularly with the impact of the Trump administration’s tariff policies on the cryptocurrency market. ETFs offer a straightforward way to participate in these tactical maneuvers, with major market players influencing their dynamics. Additionally, ETFs provide the flexibility to hold positions either long or short term.
Can the progress of tokenization and decentralized finance create space for fresh ETF structures in the upcoming years?
The regulator is expanding possibilities for crypto ETFs and recognizing crypto as a new asset class, leading to increased product offerings like futures and staking for ETFs on platforms such as B3. Embracing this nascent technology ensures regulated products are available to investors in a secure manner.
What advancements do you anticipate in the ETFs and crypto sectors over the next 3 to 5 years in the future market?
I believe that cryptocurrency regulation will become clearer, allowing for the creation of well-designed products within a regulated environment, facilitating collaboration with regulators and the stock exchange to offer innovative products to Brazilian investors, especially in the DeFi sector.
How do you perceive the linear connection between ETFs and cryptocurrencies?
ETFs and cryptocurrencies have formed a successful partnership, especially in Brazil where the top 5 ETFs are now crypto-based. This combination offers convenience with a more comprehensive fund structure and lower fees. With improved custody and regulation, the historical issues faced by cryptocurrencies can be mitigated, resulting in a positive synergy between the two investment vehicles.
What advice would you give to ETF WEEK followers considering investing in cryptocurrency through ETFs?
The key advice is to invest gradually and consistently in the market with potential for growth, such as technology that can impact society. Avoid trying to time the market perfectly and focus on building a diversified portfolio over time with professional guidance. This approach is essential in a rapidly growing global market, including Brazil.
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