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

[bitmover]

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.

[Mauser]

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.

[AjithBtc]

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.

[bitmover]

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.

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 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.

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

[Ryu XBR Samurai]

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.

 Probably many other countries in South America have such demand.

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.

[verita1]

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.

[FlightyPouch]

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.

[Darker45]

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

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.

[TIDOVEE]

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.

[fiulpro]

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.

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.

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

[Lucius]

I don't understand why the people need cryptocurrency backed fund ?
They can very easily invest in cryptocurrencies themselves?!

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.

[sunsilk]

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.

[cryptomaniac_xxx]

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.

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.

[dothebeats]

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.

[hugeblack]

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

[bitmover]

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.

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.

[so98nn]

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.

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.

[bitgolden]

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.

[SquallLeonhart]

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.

[Paycoinzzz]

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 ?