XRP Shines as Brazil Launches World’s First Spot XRP ETF on B3 Exchange

By Ahmed Ishtiaque
Published: April 27, 2025

In a groundbreaking development for the cryptocurrency sector, Brazil’s B3 stock exchange has officially launched the world’s first spot XRP exchange-traded fund (ETF), a significant step towards mainstream adoption of digital currencies. This historic ETF, named XRPH11, is managed by Hashdex and overseen by Genial Investimentos, providing investors with a regulated and efficient option for gaining exposure to XRP without the complexities of directly holding the token.

A Major Leap Forward

The XRPH11 ETF aims to deliver substantial value to investors by tracking the Nasdaq XRP Reference Price Index and investing at least 95% of its assets directly in XRP or XRP-related derivatives. Samir Kerbage, Chief Investment Officer at Hashdex, stated, “XRPH11 is part of our mono-asset fund line, aimed at sophisticated and institutional investors looking to diversify their crypto portfolios on B3.”

This launch not only signifies a milestone for Ripple and the XRP ecosystem but also sets a significant precedent in the broader landscape of regulated cryptocurrency investments. By facilitating access to XRP through the B3 exchange, Brazil embraces a forward-thinking approach that places it at the forefront of global digital asset markets.

Brazil vs. the U.S.: Regulatory Landscape

As Brazil celebrates this substantial advancement in cryptocurrency regulation and investment, the United States continues to face challenges with regulatory approval. Despite several applications from leading firms such as Grayscale and Franklin Templeton for XRP-related ETFs, the U.S. Securities and Exchange Commission (SEC) has yet to approve any such products.

Interestingly, the global appetite for XRP investment vehicles is growing. According to data from CoinShares, XRP-focused exchange-traded products reached about $950 million in assets under management as of mid-April. Last week alone, these funds attracted inflows of $37.7 million, surpassing inflows of all other crypto funds.

JPMorgan analysts predict that spot XRP ETFs could potentially attract net inflows of up to $8 billion globally if approved in major markets, a scenario that could significantly elevate the value of XRP and drive its price higher. Nate Geraci, President of ETF Store, aptly noted that “an XRP ETF approval in the U.S. feels like an inevitability at this point.”

Current Market Conditions and Future Price Outlook

Despite the excitement surrounding the XRPH11 launch, XRP’s price remains relatively stable, trading at approximately $2.20 with a modest increase of 0.8% over the past 24 hours. Analysts believe that the approval of an XRP ETF in the U.S. could trigger a significant price breakout.

As historical trends suggest possible price movements, XRP previously experienced a staggering 1,000% surge amidst a slowdown in the gold market. With gold currently facing a retreat, there are parallels being drawn, with some analysts forecasting that XRP could rise to as high as $24 in the near future, contingent on investor confidence and regulatory clarity.

The Significance of the XRPH11 ETF

The XRPH11 ETF’s rollout underscores Brazil’s growing influence in the regulated cryptocurrency arena. Approved earlier this year by Brazil’s Securities and Exchange Commission (CVM), the fund combines transparency, security, and accessibility for investors. It specifically targets institutional and sophisticated clients, providing daily transparency regarding asset holdings. Additionally, Genial Investment Securities oversees fund administration while Genial Bank SA provides secure custody for the XRP assets.

Silvio Pegado, Ripple’s head of Latin America, applauded the initiative, asserting, “XRP’s core utility as a fast and efficient settlement asset makes it a natural fit for ETF tokenization.” The XRPH11 charges an annual management fee of 0.7% and a custody fee of 0.1%, aligning its costs with those seen in traditional equity ETFs, thus enhancing its appeal to a wider array of investors.

Ripple’s Regulatory Challenges in the U.S.

The successful launch of the XRPH11 ETF may also have implications for the U.S. regulatory environment. Following the settlement of a significant lawsuit in March 2025, where Ripple agreed to pay $50 million as part of a $125 million penalty, the regulatory atmosphere surrounding XRP has begun to clear, although uncertainties persist. The ongoing deliberations by the SEC about XRP’s classification and market surveillance agreements continue to loom over potential investors.

With current tensions easing and a shift in leadership at the SEC potentially favoring pro-crypto policies, there is growing optimism that regulatory barriers in the U.S. may eventually come down. Former SEC Chair Gary Gensler’s resistance to altcoin ETFs might weaken under the new administration, thereby creating a more favorable environment for XRP ETFs in the United States.

Looking Ahead: Institutional Demand and Market Growth

Initial trading of the XRPH11 ETF reflected robust institutional demand, underscoring interest in regulated XRP exposure. Analysts anticipate that XRP’s sustained investor trust and regulatory support could result in a dramatic expansion of the Ripple exchange ecosystem.

Moreover, prominent partnerships, such as Ripple’s collaboration with Bank of America, along with continuous upgrades to the Ripple ledger, promise to enhance XRP’s utility and attractiveness. As regulatory challenges gradually dissipate and worldwide acceptance of cryptocurrency burgeons, XRP positions itself as a key player in the forthcoming wave of digital financial innovation.

Conclusion

With the launch of the XRPH11 ETF, Brazil has not only made a significant mark in the digital asset investment sphere but has also set the stage for a potential shift in the global regulatory landscape, particularly as it pertains to XRP. As the eyes of the crypto community turn towards developments in the U.S. and abroad, the trajectory of XRP will undoubtedly remain a focal point for investors and analysts alike in the coming months.

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