Just envision a retiree in Rio de Janeiro sipping coffee while tapping her phone to buy shares of an XRP ETF through her brokerage app with no crypto exchanges, no wallet password hassles, just a few clicks. This scene is now a reality, as Brazil launches the first Spot XRP ETF, a move that’s electrified the global crypto community and left many asking, When will America catch up?
The ETF, now trading on Brazil’s B3 stock exchange under the ticker XRPB11, is shaking up how everyday investors interact with digital assets. Managed by asset giant Hashdex, the fund offers a straightforward path to owning XRP, Ripple’s crypto token, famed for its cross-border payment solutions, without the headache of self-custody.
With annual fees totaling just 0.8% (0.7% management + 0.1% custody), it’s cheaper than most international crypto ETFs. “This isn’t just for hedge funds,” said a São Paulo schoolteacher who bought shares minutes after launch. “My cousin, my barber, everyone’s talking about it. It’s our chance to ride the crypto wave.”
Brazil’s bold leap didn’t happen overnight. Regulators spent months collaborating with Ripple and B3 to design safeguards, leaning on XRP’s legal clarity after Ripple’s landmark 2023 court win against the SEC. “We studied every angle,” says a B3 spokesperson. “Investors wanted simplicity, and we delivered.” The result? A frenzied debut: Over $50 million poured into the ETF in its first hours, with demand split evenly between mom-and-pop investors and institutional players.
But while Brazil pops champagne, the U.S. watches from the sidelines. Despite bipartisan calls for crypto innovation and Ripple CEO Brad Garlinghouse’s recent tease about productive talks with regulators, the SEC remains unmoved. “Same old song,” groans a New York trader. “The SEC’s ‘volatility concerns’ feel outdated when even grandma in Brazil owns XRP through her retirement account.” Critics argue the delay risks pushing U.S. investors toward offshore products or unregulated platforms.
What makes Brazil’s ETF a game-changer? For starters, it’s backed by physical XRP held in cold storage by Zurich-based Custodigit, a setup that reassures skittish investors. “It’s like gold ETFs but for the digital age,” explains a crypto analyst. You own the asset, not derivatives. That transparency builds trust. Meanwhile, Ripple’s growing partnerships with Latin American banks using XRP to slash remittance fees add real-world utility to the token’s ETF appeal.
Could Brazil’s success nudge the U.S. toward approval? Optimists point to Canada’s Bitcoin ETF boom in 2021, which pressured American regulators to eventually relent. “Markets hate a vacuum,” says an investor. If this ETF thrives, Washington will have to act or lose its grip on crypto’s future.
For now, though, the spotlight stays on Brazil. As afternoon trading wraps in São Paulo, XRPB11’s volume ticks past $75 million. At a nearby café, Costa checks his portfolio and grins. “Maybe tomorrow I’ll teach the SEC how it’s done,” he jokes. One thing’s clear: The crypto ETF race just got a lot more interesting—and the world is watching who blinks next.
