Brazilian crypto asset manager QR Assets has launched a decentralized finance exchange-traded funds, or DeFi ETF, on the Brazilian Stock Exchange.
The DeFi ETF called QDFI11 would track the Bloomberg Defi index and make 100% of its investment in real DeFi assets. The DeFi index tracks Uniswap (UNI), Aaave Decentralized Lending Pools (AAVE), MakerDao (MKR), Compound (COMP), Yearn.finance (YFI), SushiSwap (SUSHI), 0X (ZRX), Synthetix (SNX) and Curve (CRV). The ETF would be offered through Gemini Fund Solution, a platform built specifically for Crypto ETFs.
The ETF would act as a regulated alternative for investors who were looking for crypto exposure beyond traditional crypto assets such as Bitcoin (BTC) and Ethereum (ETH). The ETF would be the first of its kind and promises to bring safe exposure to the nascent industry. While crypto investments are getting more mainstream, Defi is still out of reach for many traditional investors. The ETF shares would be available at an initial trading price of around R$10 (ten reals).
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QR Capital CEO Fernando Carvalho asserted that the first DeFi ETF would play an instrumental role in diversifying the reach of traditional investors and a major step towards maturing the crypto market. He explained:
“Bitcoin and Ethereum ETFs were just the front door to an investment universe that is more rich and diverse. Now it’s time for QDFI11 and decentralized finance. More and more investors will gain access to innovative and disruptive investment products with the endorsement of regulators.”
DeFi became quite a popular crypto industry in 2021, with an estimated $200 billion locked up in thousands of protocols. Within two years of its existence, the industry is already creating waves in the banking sector, and more investors are looking to join the DeFi revolution.
However, unregulated and security vulnerabilities have pushed traditional investors away from the market, and a regulated ETF would definitely help investors get that exposure without the risk.