Galaxy Digital has launched a new Bitcoin (BTC) ETF in Brazil. The project is in partnership with the largest Latin American private asset manager, Itaú Asset Management. The plan is to develop a comprehensive lineup of physically supported cryptocurrency ETFs in Brazil. Trading is scheduled to start on November 10th on the B3 Stock Exchange.
Apart from the Bitcoin ETF, Galaxy will probably try to bring an Ethereum-focused ETF to Brazil through the agreement, as well as more diversified strategies, said Steve Kurz, the company’s global head of asset management. Kurz further added that the company is looking for opportunities in Europe and Asia as well.
Kurz stated,
“As the crypto market develops institutionally, there is a big role for blue-chip firms like Galaxy to act as a partner to large institutions that have deep client bases yet lack the in-house expertise that’s necessary to build and create high-quality crypto products.”
Additionally, Kurz went on to call Brazil a “hotbed for crypto adoption.”
Itaú Asset Management is in charge of about $165 billion worth of assets. Its main business, Itaú Unibanco, has more than 65 million consumers and operates in 18 countries.
The partnership announcement comes after galaxy reported a net loss of $68 million for the third quarter on Wednesday. However, their losses were less than earlier this year, $112 million and $555 million for the first and second quarters, respectively.
Galaxy also collaborated with the Canadian firm CI Global Asset Management to introduce blockchain and metaverse ETFs on the Toronto Stock Exchange in May.
When will the US get its spot Bitcoin ETF?
Despite dozens of unsuccessful applications, the US has not yet approved a spot Bitcoin ETF. However, there are numerous spot Bitcoin ETFs that trade on Canadian stock markets.
Brazilian company QR Asset Management created the region’s first Bitcoin ETF in June 2021. Other firms such as Hashdex have also followed suit.
Although there is a high demand for it, a spot Bitcoin ETF for the American market is no where in sight. The most recent market crash, which sent BTC to sub $17k levels, will definitely not help in introducing a spot BTC ETF product.
At press time, Bitcoin (BTC) was trading at $16,396.01, down by 7.1% in the last 24 hours.