Argentina is opening its doors to foreign investment in crypto through new exchange-traded funds (ETFs). The National Securities Commission (CNV) has approved the first CEDEAR programs for ETFs linked to virtual assets like Bitcoin and Ethereum.
This represents an important step for the country’s capital markets, placing it in line with what goes on around the world, such as in the U.S. The central bank, BCRA, didn’t waste any time either in innovating in crypto. It launched a Bitcoin mining demo at its History Museum in Buenos Aires to show how interested the nation is in blockchain technology.
Argentina leads in crypto value received
Chainalysis also reports that Latin America is a region of very rapid growth in the crypto space, up 42.5% year over year. It says Argentina now leads the pack in the region, receiving $91.1 billion in cryptocurrency, a little ahead of Brazil’s $90.3 billion. The reasons such countries as Venezuela, Brazil, and Argentina drive this growth are due to their diverse markets.
Other elements propelling growth in the region are stablecoin-based remittances, with the highest-growing countries in terms of crypto adoption being Argentina, ranked 13, Brazil at 14, Mexico ranked 16, and Venezuela at 16th among the 20 top globally ranking on the Global Adoption Index.
New CEDEARs open the door to crypto investments
The CNV President, Roberto E. Silva, announced that he had given his approval to begin operating CEDEAR programs for ETFs, one of the great announcements since the sanction of Law N°27.440 six years ago. This law opened a whole new set of investment possibilities and brought Argentina closer to the standard of international markets.
New CEDEARs will, for the first time, allow investment in ETFs linked to virtual assets such as Bitcoin and Ethereum. This follows trends seen in more developed markets, including the United States, where investment in virtual assets is through capital markets. The move is set to widen access to cryptocurrency investments via regulated channels.
In addition to crypto-oriented ETFs, the CNV has approved the permission of CEDEARs in commodity investments like gold, as well as stock market indices from other countries, such as the GLD for gold and FXI for Chinese markets, to continue diversifying the options available to Argentine investors.
Yet, with the CNV still innovating through RG N°1030, the door is wide open for more CEDEARs. The latter will permit Argentine investors to participate more easily in global markets and, especially in virtual assets.
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