The World’s First Spot XRP ETF Listed on Brazil’s B3 Stock Exchange

Birth and Mechanics of the XRPH11 ETF

On April 25, 2025, Brazil’s B3 stock exchange witnessed a historic moment as asset manager Hashdex, in partnership with Genial Investimentos, launched the world’s first spot XRP ETF (XRPH11). The product tracks the Nasdaq XRP Reference Price Index and commits to allocating at least 95% of its net assets to XRP, with the remainder used for liquidity management. This marks the first time XRP—long embroiled in litigation with the U.S. Securities and Exchange Commission (SEC)—has been made available to investors through a regulated traditional financial instrument.

The creation of XRPH11 owes much to Brazil’s forward-looking regulatory framework. In 2024, Brazil passed the “Cryptocurrency Law,” classifying digital assets into “securities” and “payment instruments.” XRP was categorized as a payment instrument due to its cross-border payment attributes, sidestepping securities disputes. Furthermore, the Brazilian Securities and Exchange Commission’s (CVM) sandbox mechanism allowed Hashdex to complete compliance verification, making it the first crypto ETF listed under that regime.

Product Structure and Market Performance

XRPH11 employs a dual-track asset allocation strategy:

1. Spot Holdings: 95% of capital is directly invested in XRP spot tokens, custodied by Genial Bank SA for transparency and security.

2. Derivatives Hedging: The remaining funds are used for liquidity management and futures contract hedging to mitigate market volatility.

First-day data show an initial net asset value of approximately $40 million, an annual management fee of 0.7%, and a custody fee of 0.1%. Subscription was limited to institutional and high-net-worth investors. Although first-day volume was not disclosed, on-chain data reveal whale addresses increasing XRP holdings by over $50 million, driving XRP’s price up 8% within 24 hours to break above $2.20.

Brazil as a Crypto Innovation Testbed

Brazil’s role as an XRP ETF pioneer stems from a synergy of market demand and policy innovation:

• User Base: Brazil hosts Latin America’s largest crypto market, with about 12% of its population (over 25 million people) holding digital assets, far above the global average of 3.9%.

• Inflation Hedge: Persistent inflation above 5% has driven Brazilians to view cryptocurrencies as value stores; in 2024, real-denominated stablecoin trading volumes surged 200%.

• Infrastructure: B3 supported Bitcoin futures trading as early as 2023, and its system compatibility lowered the listing barrier for an XRP ETF.

Previously, Brazil launched the world’s first Solana ETF (SOLH11), but lackluster liquidity prevented a broader impact. Can XRPH11 break that curse? JPMorgan predicts that if the U.S. SEC follows suit and approves a U.S. XRP ETF, global XRP ETP assets under management could grow from $950 million to $8 billion.

Investor Opportunities and Risks

For different strategies, XRPH11 offers:

• Short-Term Traders: Monitor initial price swings; XRP’s near-term support is $1.95–2.08 and resistance at $2.84.

• Long-Term Holders: Track Ripple ecosystem developments, such as its integration with the Stargate protocol for cross-chain data verification and real-world use in cross-border payments.

• Institutional Allocations: XRPH11 gives pension funds and other traditional institutions a low-barrier entry, but watch for the 11% team allocation unlocked at end-2025, which could trigger selling pressure.

Risks include XRP network security and regulatory divergence between Brazil and other jurisdictions (e.g., the U.S. SEC’s current 74% probability of approving a U.S. XRP ETF), which may affect long-term valuation.

Global Crypto Market Takeaways

The XRPH11 listing is not only a victory for Brazil but also offers three key lessons for global crypto regulation:

1. Tiered Regulation: Avoid one-size-fits-all by assigning oversight based on asset type (e.g., securities by the CVM, payment instruments by the central bank).

2. Sandbox Mechanisms: Permit controlled innovation and balance risk with technological progress.

3. Infrastructure First: Upgrading payment systems (e.g., Brazil’s PIX instant payment) and exchange compliance paves the way for complex financial products.

Retail investors can use JuCoin’s spot grid tools to automate range trading of XRP and other digital assets while diversifying risk.