Brazil largest investment bank just created a 100% cryptocurrency backed fund

[Febo]

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.

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[teosanru]

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 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.

[bocyaj]

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

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.

[South Park]

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.

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.

[MCobian]

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.

[Lucius]

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.

The stock exchange declared it had approved the ’Hashdex Nasdaq Crypto Index’ on September 18, showing that 3 million Class E shares will be issued for trade on the platform.
Cointelegraph Brazil supported the Nasdaq partnership and ETF with Hashdex’s chief executive, Marcelo Sampaio Hashdex currently manages $46.4 million worth of resources constituting four capital, including capital holding crypto assets. The company’s auditor is KPMG, its primary financial institution is Silvergate Bank, and Hashdex’s crypto asset custodians are Xapo, Kingdom Trust, and Vo1t.

[bitmover]

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.

The stock exchange declared it had approved the ’Hashdex Nasdaq Crypto Index’ on September 18, showing that 3 million Class E shares will be issued for trade on the platform.
Cointelegraph Brazil supported the Nasdaq partnership and ETF with Hashdex’s chief executive, Marcelo Sampaio Hashdex currently manages $46.4 million worth of resources constituting four capital, including capital holding crypto assets. The company’s auditor is KPMG, its primary financial institution is Silvergate Bank, and Hashdex’s crypto asset custodians are Xapo, Kingdom Trust, and Vo1t.

I saw this news.

This fund is very interesting. Look at its composition:

Bitcoin   
71,72%
Ethereum   
14,11%
XRP   
3,71%
Bitcoin Cash   
1,48%
Binance Coin   
1,28%
Chainlink   
1,08%
Litecoin   
1,08%
Bitcoin SV   
1,06%
EOS   
0,88%
TRON   
0,69%
Neo   
0,56%
Tezos   
0,55%
Stellar   
0,54%
Cosmos   
0,38%
Dash   
0,24%
Aave   
0,24%
Ethereum Classic   
0,23%
OMG Network   
0,16%

https://www.hashdex.com.br/indice

These are the rules to get into the index:

To be eligible for HDAI, cryptography must meet the following criteria:
Floating price
Traded at a qualified crypto broker
Supported by a professional custodian
Average daily volume of US $ 4 million
Minimum market representation of 0.25%

From the same source as above.

[7788bitcoin]

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.

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.

[wack slacker]

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 ?

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.

[Ryu XBR Samurai]

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 ?

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.

[South Park]

snip
This fund is very interesting. Look at its composition:

Bitcoin   
71,72%
Ethereum   
14,11%

snip

https://www.hashdex.com.br/indice

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.

[pokeronlinestatus]

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.

[YOSHIE]

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.

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.

[bitmover]

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.

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

[whyrqa]

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.

[South Park]

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

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.

[cheezcarls]

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.

[bryant.coleman]

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.

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.

[shoreno]

it was a good news and i feel happy not till i read this

This fund is not available for small investors,

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 .

[hulla]

it was a good news and i feel happy not till i read this

This fund is not available for small investors,

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.

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.

It was actually 60% and it was owned by XRP creator. However, it was not completely kept in cold storage

And this inflates the market capitalization of Ripple.

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.