The First XRP Spot ETF Gets Approved in Brazil: How it Matters

Brazil has made history by approving the world’s first XRP spot ETF, marking a milestone for Ripple’s native token and the broader cryptocurrency market. The approval, granted by Brazil’s Securities and Exchange Commission (CVM), paves the way for institutional investors to gain direct exposure to XRP through traditional financial markets.

Let’s break down what this means for crypto adoption, market impact, and the future of XRP ETFs worldwide.

Brazil Approves First-Ever XRP Spot ETF

Brazil’s CVM has officially approved the Hashdex NASDAQ XRP Index Fund, making it the first exchange-traded fund (ETF) that directly holds XRP. 

The ETF will trade on B3, Brazil’s main stock exchange, with Genial Investimentos serving as the fund administrator. While the official launch date is yet to be announced, Hashdex has confirmed the approval and will soon release trading details.

According to Silvio Pegado, managing director of Ripple in Latin America, XRP’s strong real-world utility, rising institutional demand, and large market cap made it a natural choice for an ETF.

Why This Approval Matters

1. Institutional Investors Can Now Buy XRP

The XRP spot ETF provides a fully regulated investment vehicle for institutional and retail investors. Instead of dealing with crypto exchanges, wallets, or private keys, investors can now gain exposure to XRP through a traditional stock exchange.

2. Brazil Leads While the U.S. Lags

Brazil has been one of the most crypto-friendly nations when it comes to regulatory approvals for digital asset ETFs. The country has already introduced Bitcoin, Ethereum, Solana, DeFi, Web3, and metaverse ETFs through Hashdex.

Meanwhile, in the U.S., the Securities and Exchange Commission (SEC) has yet to approve an XRP spot ETF, despite multiple applications from asset managers like CoinShares, Bitwise, 21Shares, and Grayscale.

3. XRP’s Market Cap and Institutional Interest

XRP is currently the third-largest cryptocurrency, with a market cap of $155 billion, trailing only Bitcoin and Ethereum. With institutional investors now able to enter the market through a spot ETF, demand for XRP could rise.

Could the U.S. Be Next?

The SEC has recently approved Bitcoin and Ethereum spot ETFs, signaling a potential shift in its approach to crypto investments. However, XRP remains a complex case due to its past legal battles with the SEC.

However, the U.S. SEC has recently acknowledged a spot XRP ETF filing from Cboe BZX Exchange on behalf of Canary Capital. This follows earlier acknowledgments of similar filings from 21Shares, Bitwise, Grayscale, and CoinShares. 

In recent months, issuers have rushed to submit spot crypto ETF applications as the pro-crypto Trump administration takes charge. Meanwhile, a newly formed crypto task force, led by Republican SEC Commissioner Hester Peirce, aims to clarify which digital assets qualify as securities, among other key initiatives.

According to JP Morgan analysts, spot XRP and Solana ETFs could attract up to $14 billion in investments within their first year if approved in the U.S. Such an influx of capital could drive the next wave of institutional crypto adoption.

Ripple’s Growing Influence in Brazil

Beyond the XRP ETF, Ripple’s blockchain technology is expanding in Brazil through stablecoins and financial services.

Brazil’s Braza Group, a key player in the country’s interbank market, is launching a stablecoin pegged to the Brazilian Real (BBRL) on the XRP Ledger.

Braza Bank, which specializes in foreign exchange and international payments, is backing the stablecoin, aiming to create a secure, compliant digital asset that can boost adoption across South America and beyond.