Key Takeaways
- Brazil’s B3 exchange launched XRPH11, the world’s first spot XRP ETF, on April 25, 2025.
- Managed by Hashdex and administered by Genial Investments, the ETF tracks the Nasdaq XRP Reference Price Index.
- Approved swiftly by Brazil’s CVM, the product reflects the country’s progressive stance on crypto regulation.
- The ETF allocates 95%+ of assets to XRP, with a 0.7% management fee and 0.1% custody fee.
- The U.S. market awaits SEC approval, making Brazil’s launch a benchmark for global regulators.
Trailblazing Debut on B3
On April 25, 2025, XRPH11 began trading on B3, marking a historic milestone as the first regulated spot XRP ETF. Strong trading volumes on day one underscored demand from institutional and retail investors.
👉 Why Brazil’s XRP ETF is a Game-Changer
Why This Matters
- First-Mover Advantage: Brazil cements its reputation as a crypto innovation hub.
- Mainstream Adoption: Demonstrates seamless integration of digital assets into traditional markets.
Behind the Scenes: ETF Mechanics
Structure & Custody
- Index Tracking: Mirrors the Nasdaq XRP Reference Price Index (NQXRP).
- Governance: Multi-party oversight by Genial Investments (administration) and Genial Bank (custody).
- Transparency: Daily NAV calculations and secure asset segregation.
Regulatory Green Light
Brazil’s CVM approved XRPH11 in February 2025, just months after its landmark Solana ETF nod in August 2024.
Approval Highlights
- Speed: Six-month turnaround from proposal to launch.
- Safety: Rigorous checks on cybersecurity, custody, and market surveillance.
XRPH11 at a Glance
| Feature | Detail |
|------------------|---------------------------------|
| Asset Allocation | 95%+ XRP, 5% liquidity reserves |
| Fees | 0.7% management, 0.1% custody |
| Liquidity | Derivatives + spot market tracking |
👉 How XRP ETFs Compare Globally
Genesis of the Fund
Development Timeline
- December 2024: Legal structuring and IT integration with B3.
- Stress Tests: Simulated volatility to ensure resilience.
Quote:
“XRP’s utility as a settlement asset makes it ideal for ETFs.” — Silvio Pegado, Ripple Latin America
U.S. Regulatory Landscape
Despite Ripple’s $50M SEC settlement in March 2025, the U.S. lags in approving spot XRP ETFs. Brazil’s success may influence SEC deliberations.
Market Outlook
- Projected Demand: Up to $14B inflows globally for XRP/Solana ETFs (JPMorgan).
- XRPH11’s AUM: Launched with $40M, signaling strong institutional interest.
FAQs
1. How does XRPH11 differ from futures-based ETFs?
- It holds actual XRP (95%+ allocation), avoiding futures roll costs.
2. What are the risks?
- Volatility: XRP’s price swings may impact NAV.
- Regulatory Shifts: Global policies could affect liquidity.
3. Can U.S. investors access XRPH11?
- Currently, no. But Brazil’s model may expedite U.S. approvals.
4. Why Brazil?
- CVM’s agile approach and prior crypto ETF experience.
Final Thought
Brazil’s XRPH11 sets a precedent for regulated crypto investments, blending innovation with investor protection. As global watchdogs take notes, the ETF could catalyze a new wave of digital asset products.