The world’s first exchange-traded fund [ETF] dedicated to the decentralized finance [DeFi] network has launched in Brazil. Crypto asset manager QR assets have launched a DeFi ETF called QDFI11 to track the Bloomberg DeFi index and make 100% of its investment in real DeFi assets.
The said index will track prominent DeFi projects like Uniswap, Aave Decentralized Lending Pools, MakerDao, Compound, Yearn.finance, SushiSwap, 0x, Synthetix, and Curve. Reportedly, they would be offered through Gemini Fund Solution, a platform built specifically for Crypto ETFs.
This would be a good opportunity for users to find more value in DeFi projects and away from the mainstream crypto assets like Bitcoin and Ethereum. The ETF would be initially available to trade for R$10 [Ten Brazilian Reals]. The product would be a regulated alternative and promise safe exposure to the crypto industry.
The CEO of QR Capital, Fernando Carvalho also believed that there was first movers’ advantage for the first DeFi ETF and it would play an instrumental role in diversifying the reach of traditional investors. Calling it a major step towards maturing the crypto market, Carvalho stated,
“Bitcoin and Ethereum ETFs were just the front door to an investment universe that is more rich and diverse. Now it’s time for QDFI11 and decentralized finance. More and more investors will gain access to innovative and disruptive investment products with the endorsement of regulators.”
The DeFi technology is still new, while the ETF industry was valued at $10 trillion. The combination of the two will attract more users without a doubt but also competition.
Reportedly, another crypto asset manager in Brazil, Hashdex was set to launch a DeFi ETF and be listed on the Brazilian stock exchange B3 by February. According to Hashdex, 70% of the ETF will be composed of DeFi protocols, 15% of smart contracts platforms, and the remainder of DeFi protocol supports, which included identity verification and scalability solution like polygon, Chainlink, and The Graph.