Bitcoin Forum

https://cointelegraph.com.br/news/xp-investimento-starts-trading-100-bitcoin-and-cryptocurrency-fund-approved-by-cvm

The fund, released by XP Investimentos, was already approved by CVM (government banks regulator). It is going to be a 100% cryptocurrency fund.

XP investimentos is by far the largest investment bank in brazil, and it is also in the US as XP Inc (xpinc.com)

This fund is not available for small investors, only corporative investors or very rich people.
Now rich people and corporate funds are going to be able to buy bitcoin easier in brazil.

This is great news for the bitcoin price. The more investors we get the higher the price in the future. Unfortunately it's not for the little guy. I have Brasil on my investment radar for a long time but my portuguese skills are very basic. I think among the emerging markets Brasil is a great country with a lot of upside potential.
I would assume there is a lot of demand for such funds in Brasil even for smaller investors. BRL is really lagging behind in the last month, so for investors to get out of the domestic currency would be a good deal. Probably many other countries in South America have such demand.

How this gonna make big changes in the market. Right now Brazil is one among the country that has got more number of common people using bitcoin and other cryptocurrencies. The crypto backed fund isn't useful for the common joe, and this being used by corporate and rich people will surely create more visibility to cryptocurrency and the market might get widened.

I don't expect big changes in the market in short term, but it is good over the long term. Other investment banks may follow XP if the funds has a good performance.

Overall, it is better for bitcoin as a reserve of value, not as a form of cash.


BRL is really lagging behind not only this month, but this year!!

Where government's are poor stewards of the local currency the raison d'etre of cryptocurrency is highlighted.  In the end this may be what fully causes a major acceptance of crypto.

We also talk so much about cryptocurrency but the tool that is blockchain could gain acceptance and understanding in many other areas.  Sometimes I think the cypto community puts the cart in front of the horse and should be leading with blockchain instead of Bitcoins.

This is good news for Brazil and for the entire community because this is how Bitcoin is showing that it is a reliable asset for investors. Now we can assure that these large investors will create their businesses to lead the Bitcoin-based economy, I hope. In greater detail I would like to know more because Brazil is my neighbor because I live in Venezuela.

All I know is that it is great since we've been in a debate for a long time about bitcoin not being this high in the corporate scales, even though it is just Brazil, still, that gives us something that other countries might follow. This might lead to better things in the future like maybe bitcoin as usually debated in the past, reserve like gold.

This link leads us to an article in Portuguese which, for some reasons, couldn't be translated into English by my chrome browser. Well, the salient details are in the OP.

Anyway, this is Bitcoin slowly but surely creeping into the systems of traditional institutions. This is acknowledging the legitimacy of Bitcoin. However, while it could mean large amounts of institutional investors' funds will be flowing into Bitcoin with this development, it would have been much preferable if they made it available for everyone and not just with the rich ones.

Brazil, being the 7th most populous country in the world, could translate into a very large Bitcoin market of ordinary small-time investors.

Brazil is quite awesome in investment, despite their very large population they are able to be among the first 10 investors in the world, this is enough guarantee for the cryptocurrency bank to give them 100% back up, they already have standing reputation and with their involvement, it must be of great advantage to the cryptoworld. Brazil are known to be excellent investors in agriculture, automobiles and few others.

I don't understand why the people need cryptocurrency backed fund ?

They can very easily invest in cryptocurrencies themselves?!

What I understand is people are running out of ideas and therefore they are just trying to add cryptocurrencies everywhere even when it does not make sense.

Don't invest in things like this !! We are trying to actually dissolve the middle man and this is nothing but their new strategy to bring it back in the market.

Plus the fact that they are only allowing the big investors means the person behind this project is not goal oriented but actually money oriented. At the same time it's totally unnecessary and very obvious.


For sure ^ but the real thing is *is an investment like this needed?*

Well at least the answer to that question is simple, and the reason is that it is much easier to invest in crypto through a fund than to go into an investment on your own. Such investors buy shares in crypto funds in a very easy way, they don't have to worry about crypto wallets, private keys, or they don't have to know anything about BTC - after all, they are only interested in profit.

It was only a matter of time before banks and other financial institutions began to take an interest in Bitcoin, and we see that this is happening everywhere from the EU through the USA and now Brazil. Although I would rather see 1000 BTC owned by 1000 individuals, we cannot prevent one person or one institution from buying such a quantity - nor can we prevent banks from launching crypto funds - the market is free at least in that segment.

My reaction is simply, "nice". I have that first thought because it aims to larger investors that are also aiming to invest in cryptocurrencies. At least, they have a bracket of their targeted investors.

This is what we like right? The institutional investors, large investors or corporations, and other big companies that are wanting to invest in bitcoin. If this makes the process for them easily, other countries might have an idea of doing the same.

Just makes me wonder though why it is just being offered for corporate investors or very rich people? So this will make wealthy become richer by any means? On the bright side, it could somewhat push the price but I won't say it will really bring a lot of chances, maybe the ecosystem will expand again as we might see new players from Brazil wealthiest entering the crypto space, so this is a welcoming development.

Perhaps they want the investment to have some considerable weight on the get go to attract more investors as well. More well-off investors on the group = more chances of getting huge backing ultimately. This could give the investment a huge boost on its funding and embark on a lot of possible projects early on the existence of the fund. Also perhaps to ensure that no investors would be backing out from the project given that they don't necessarily need whatever investment they just placed in. This tend to happen more on small investors with fickle minds on what fad do they want to invest their money in.

Although I like decentralization, we have to believe that there are a lot of decentralized applications that will surface and offer many advantages.
banking will enter the crypto world supporting some blockchain based coins or using some smart contracts

it is easier to get approved by CVM (The government banks regulator) if it is restrict fund. The more restrict, less bureaucracy and easier/faster to get approved in Brazil.

there 3 main types of restritctions here in Brazil:
1 Open funds, anyone can buy
2 Funds for Qualified investors  (People who have 1 million BRL invested, nearly 185K USD)
3 - Funds for Professional Investors (People who have 10 milllion BRL invested, about 1,850K USD)

This fund is for professional investors.

I think I am thinking opposite to this one. Why not make this available for both the parties at all? By party I mean small investors as well as big investors at the same time. The small investors would be us, who can combinely surpass the investments of these big investors.

If these people enter in the legal way then they could easily manipulate the market by their larger amounts. Lets not forget we ended up defining these people as whales. Now the govt. itself making them legal loop hole to enter into it. I seriously concerned about the common investors rather than these big fat wallets.

100% crypto funded is not something I would probably do myself. I am not against investing into shares and stocks and gold and other stuff, they are not bad neither and they would probably do well in most circumstances, I do not like their ideas, just because there are shares in the world it means that you basically have to end up with some people who constantly want profits after profits forever meaning a company logically needs to get all the money in the world to peak, or they have to crash, no company can go profiting forever without a stop, how could you get more and more money without having all the money in the world? And since you can't do that the idea of shares is funny to me.

However for investing it is not bad. Crypto is great too, I love it and that is why I am here, so I would have portions of all of them in my portfolio if I can.

I guess you can have one yourself as well, what is it so interesting about this? All you have to do is have a wallet that supports multiple coins and then buy those coins from an exchange and put all of them into that said wallet and you are done.

Why does anyone need a third party just because they are doing something any regular person can do, a young teenager can do this, it is not really that complicated, maybe old people can't, like over 60+ (and depending on nation and tech savy over 40 for some countries) may not be able to, but to be honest this is a long haul type of situation anyway, so they shouldn't really be caring about it anyway. I do not get the purpose of this, but if it helps the crypto world to grow and increase the adoption rate I am all for it.

I think this is a crazy decision by the Brazilian government.  although it is the decision to help the crypto market increase liquidity, it will be harmful to the Brazilian economy in the future.  Investing in the crypto market is risky and so will Brazil's economy.  Do you guys think so ?

It is fund for only professional Brazil investors. I dont think is such a risky decision from Brazil government. Those people will for sure not go on streets when Bitcoin dumps and protest to overthrown government.

This can be said as a double edged sword. I think one primary advantage of these large fund houses entring the cryptospace would be that now the Volatility meter of cryptocurrencies would definitely go down. You would see much stable markets if a lot of such funds come in. But at the same time this can hurt the market for retail investors. As we already know that how manipulative can crypto markets be without regulations. Such large crypto backed funds can easily manipulate the markets and there are zero rules that are stopping them. With such huge chunks of money even exchanges won't take any action against them.

This will be good news to the bitcoin and cryptocurrencies investors.It will be uses a Fiat by using online tools and application.Surely it will increase the flow of bitcoin in the market ,which in turn increase the price of bitcoin.This is a cyclic one,which further increase the investors to the bitcoin trading.This will make some positive move on market.

While it is always nice to see the adoption of institutional investors going up at the same time I do not like that funds like these are only available to the super rich, it is obvious to me that the regulation of the cryptocurrency market has to do with stealing opportunities that should be available to anyone and keep it for the rich, in fact one of the most attractive characteristics of this market is that even if you have a budget of only 100 dollars you can still buy several decent coins that could give profits in the future and funds like these seems to want to block that possibility for normal people.

The more corporate investors and rich people who buy Bitcoin, this will make Bitcoin more trusted. And things like this are good
news in my opinion, this is very good for Bitcoin adoption in Brazil. It is unlikely that in the short term there will be changes in Brazil,
but in the long run there will definitely be changes that will make the economy in Brazil even better. Hopefully this will lead other
countries to consider accepting Bitcoin, if more and more countries accept Bitcoin, it should make Bitcoin's price go up.

Given that the topic is related to Brazil, here is another hopefully good news for the crypto scene there - the first BTC ETF should be launching in Brazil soon - how important and significant this is I cannot say, because when it comes to the BTC ETF it seems that the only thing relevant is what the SEC in the USA will say on the matter.

I saw this news.

This fund is very interesting. Look at its composition:



These are the rules to get into the index:


From the same source as above.

What is the real economic situation of Brazil, i still remember the protest regarding the increase in tax and other things when they conducted world events and the pandemic might have cost some turmoil in the economy, if they have a weak economy these so called backed funds will not have the strength if recession hits them, but the idea of having a cryptocurrency backed fund for big players is interesting.

Comprehensive investment in cryptocurrencies by the Brazilian government. I don't know what they're thinking about when they invest 100% in cryptocurrency. Crypto funds lost money in 2018 and 2019, some of which went bankrupt.
They should diversify their portfolios instead of focusing entirely on cryptocurrencies.
The decision is theirs and this is good news for the market as a whole.

I mean if this becomes a trend then the market will rise greatly and Brazil right along with it.  They will look like market savants.

I find this very interesting they choose to compose their portfolio with 71% of bitcoin, despite the market dominance of bitcoin being lower than that, this means that most likely they think bitcoin is undervalued and that sooner or later it will begin to outpace the rest of the market as they lose hope on the DeFi hype, however they have also chosen to have a slightly higher percentage of ethereum which means they are covering themselves in the case the DeFi hype continues.

When regulated institutions like this are investing money in cryptocurrency I do wonder what’s their main plan, and they are aware of the fact Bitcoin is volatile, so what plans do they have in a situation whereby the market starts falling? They are going to be losing of course, so what are they going to do about it, steady hold their investment stored in crypto no matter what?

Or are they going to be the type that are trying to just benefit only when the market starts experiencing huge growth? For sure that’s the main target of everything.

I don't think it's fair.
The rich get richer, the poor get poorer.
Because the funds formed by the Brazilian government are specifically for the rich, but even though this has become public news, the Brazilian government should be able to review the use of the money.

I mean, it can be invested or used by ordinary people, who want to invest in cryptocurrency.
If in my opinion there is a political element between the government and the Brazilian mafia, this is not good for the public for weak crypto users.
What I know in general is that Brazil is the biggest crypto user today, not only the rich who use it, the government must be fair in implementing the formation of crypto-based funds.

I agree., it is not fair.

But the fund is not created by Brazilian government.  It is created by a private bank, which is only complying with regulations.

This kind of high risk assets are inaccessible for poor people here , due to regulations
 To protect people from themselves.  Welcome to socialism and welfare states

Guys, I completely agree with you, but I think that there can be no question of any honesty. Even today, the cryptocurrency market is very much dependent on big whales and corporate speculators, which constantly influence the rates of cryptocurrencies and constantly manipulate them lead to the loss of large amounts of cryptocurrency funds for ordinary users. Very often we lose the latter, but we are not talking about honesty, but we will talk about volatility and the real trend of the cryptocurrency market, with a high level of risk.

Many countries have similar laws like that, in order to become an investor you need to prove you are already rich or you are on your way to be which is ridiculous because your skills on the markets have nothing to do with how much money you have on your bank account, after all there are many persons that are great at generating profits with their careers or businesses but that do not know anything about the markets, while someone with a small salary could be an expert, but it is obvious this is a way to keep people trapped, reduce the opportunities they have access to and to not let them improve their lives with their knowledge.

It means that it’s just getting better now for massive adoption of cryptocurrencies in banks. I’m so happy for Brazil’s largest investment bank in doing that.

Last year in the Philippines, UnionBank has launched their own crypto ATM. In the news, I think there are so many crypto ATMs being deployed and operational worldwide. I’ve encountered some of them in the Philippines, Hong Kong, Singapore and Taipei. Expect that there will be more to come, especially when it comes to cryptocurrency-backed funds.

No doubt that other banks would follow suit to create crypto-backed funds, but it’ll be a slow and sure process.

It depends on how you calculate the figure for market capitalization. In case of Bitcoin, the actual market capitalization is closer to what is given in websites such as coinmarketcap. But in case of some of the cryptocurrencies such as Ripple (XRP), there is a large difference between these two. For example, close to 80% of XRP is being held in cold storage and therefore not in free-float. But for calculating market cap, this 80% is also included. And this inflates the market capitalization of Ripple.

it was a good news and i feel happy not till i read this as a small investor like myself this is a bad news but this only applies to this bank . small investors still have a chance if there will be banks that make a simillar concept but this time it will only be made specifically for small investors.

on the brightside , this can still up the market of bitcoin in a faster way even without the help of small investor because we are talking about large companies and rich people on here .

It still a good news mate because the largest investment bank in Brazil also join the group of big companies that are investing in Bitcoin and if you are follower of everything that have to do with crypto asset exchange traded fund youll it something that have to do with whales investment. However, small investors are restricted from invest or trade crypto.


It was actually 60% and it was owned by XRP creator. However, it was not completely kept in cold storage
It was used to manipulate XRP market. Mind you, its XRP not Ripple cause Ripple is the company technology while XRP is the company crypto.

I think they made it that way for long-term investors only. As you see only "rich" people or those who can afford have been accepted. They must have foreseen for bitcoin price to keep on growing. Assigning people to trade their invested funds would be a bit risky for being stolen or getting negative profit. Hope they will open it for the entire world or that other banks would imitate them. That will definitely bring more people into crypto.

Brazil made a great move to stabilize an investment for specific market for the upper society. This is a good news to those who belong to that classification, but a bad news to small investors planning to invest in crypto. It will be much easier to those big corporations, companies, establishment, and investors, while not much to those small tine enterprises.

However, many investors will soon invest in crypto that would make an increase in price of btc in the future. The more investments bitcoin will have, the better price it will have. Bitcoin will also become trusted and reliable form of investment if many will patronage investing in it.

Hopefully this feature would also be available to the small corporations and common people that aim to invest as well. It's nicer to be utilized by everyone and not just for elites.

Does that mean that the bank is giving out loans for people who are having high credits, if that is the case it will be a risky proposition as the cryptocurrency market is really volatile and we might see people suffering big loss when the market goes down after a big rally, will see how this will go and whether it will boost anything.

This is very exciting news, because good things will happen if the rich people and corporate investors start buying large amounts of
Bitcoin for investment. Of course this will make the price of Bitcoin go up even more, I hope not only Brazil will do this. Hopefully other
countries can do the same. As we know the development of Bitcoin in Brazil is increasing, It's no wonder Brazil's largest investment bank
accepts cryptocurrency backed funds.

I'm sure banks are doing some studies regarding on to that scenario and they will not execute those particulars if they know people will suffer from huge loss, although it's really risky but worth to try since for now crypto is in good shape and can have potential to economically re shape the status of the country or certain individual. But let see if they will success on this.

This just means that a small investor will need to invest in cryptocurrencies by himself, which is not that hard, a person looking to make their own portfolio could just invest most of his money in the top 5 coins and then a small portion on high risk investments, that way if he fails on selecting some of those high risk coins then he does not lose a huge deal of capital but if he gets it right then he still gets some decent profits, the only difference is that you are the one that will need to monitor your investments but that is not difficult at all if you ask me.

Everything will have plus and minus, corporate investor will make bitcoin price more volatile than now, you could see the price fall several percent and up several percent that could lead a bad impact for retail trader. Yeah, I feel it right now, the price of bitcoin is cannot be predicted easily anymore, in several times I was wrong to predict it and make me loss in some my day trade. It would be good if their intention to invest in bitcoin is for long term investment, the good thing will come if they choose it because as much as they hold bitcoin the price will be stagnant and this will make many people interested to having bitcoin.

Brazil has a ton of things they need to fix first in order to make a difference in the crypto world. I am not one for judging any nation but they are really not doing that well and that means if they want to make a difference in the crypto they need to be big in economic world as well, considering they can't change the world's economy all that much because they are not that rich, this can be done by like 5 or 10 nations, probably not even 10, just 5 nations.

This is why I believe it is quite important to realize that these type of moves are nice for individuals in Brazil who are interested in crypto, this means Brazil is becoming more and more pro-crypto so people here who are from Brazil should be happy about it but this is not a global thing.

We also need Brazil to realize that amazons are not something to toy with and you can go as 100% crypto as you want but if you do not save amazons that is hurting the world so much that we are never going to be the same ever again.

Having just one good news coming out of Brazil will not make the world a better place, maybe Brazil will be looking at crypto like it is the greatest thing ever and thanks to Brazil approaching crypto as a good thing other big nations and even small nations will do and suddenly we have a world where paying with cash/credit/crypto will be standard, so crypto will be added, everywhere all around the world, all thanks to Brazil, yet it would still not negate the fact that they are destroying the world, we will literally die if do not keep amazons safe.

Brazil is the 8th largest economy in the world, larger than countries like Italy and Canada. In fact, it's the largest economy in the western hemisphere after the United States. With a large population and a lot of natural resources, the economy is quite advanced.

Brazil is a very developed country and in order to further improve their economy brazil's largest investment bank has just created a 100% cryptocurrency backed fund which will further increase the demand for crypto. A lot of good moves for brazil as well as one of the core functions of bitcoin investment banking is corporate financing. In this work the investment bank assists clients in project formulation liaison with regulatory bodies consolidation and acquisition and formation of capital structures.