First XRP ETF Approved in Brazil, Not U.S - How is the Impact on XRP ETF Development in the U.S?

XRP ETF approved in Brazil, this news certainly sets a good precedent for the crypto world.

So far, news about XRP ETF has always revolved around the US, with the theme of the battle between Ripple and the SEC.

But what happened? Until now, the US has not issued or approved a full XRP ETF; in fact, Brazil is the world's pioneer of the XRP ETF.

First XRP ETF Approved in Brazil

Brazil has officially become the first country to approve a spot XRP Exchange-Traded Fund (ETF), marking a significant step forward for cryptocurrency adoption and regulation. 

The approval, granted by Brazil's Securities and Exchange Commission (CVM) in February 2025, introduces the Hashdex Nasdaq XRP Index Fund, the world’s first XRP spot ETF. 

Managed by Hashdex, this fund will be listed on Brazil's B3 stock exchange, providing investors with regulated exposure to XRP without the complexities of directly holding the cryptocurrency.

The Approval Process

The process leading to the XRP ETF approval in Brazil began in late 2024, when Hashdex submitted its ETF proposal to the CVM, outlining the fund's structure, compliance framework, and potential market impact. 

The CVM conducted a thorough review over several months, focusing on investor protection, transparency, and financial system stability.

Following an in-depth evaluation, the CVM granted formal approval for the Hashdex Nasdaq XRP Index Fund in February 2025. 

Read Also: XRP Price Prediction 2025 - 2050

This decision came after ensuring the ETF met Brazil’s stringent regulatory standards for financial instruments and addressed concerns related to market volatility and investor risk. The approval positions Brazil as a global leader in cryptocurrency-based investment products.

Although the exact trading date on the B3 stock exchange is yet to be announced, Hashdex has confirmed the approval and is expected to release additional details in the coming weeks.

Market Reaction and Global Implications

The announcement of the ETF approval had an immediate impact on the market. Within 24 hours of the news, XRP surged by over 5%, reaching $2.71, and has seen a remarkable 350% gain over the past six months. 

The anticipation of the ETF launch, combined with Brazil’s favorable regulatory environment, has bolstered investor confidence and increased market activity.

Meanwhile, in the United States, the Securities and Exchange Commission (SEC) is still reviewing applications for XRP ETFs submitted by firms such as CoinShares, Canary Capital, and WisdomTree. 

While these applications have been acknowledged, they are undergoing a public commentary period, and no approvals have been granted yet.

Read Also: The Potential Impact of an XRP ETF Approval

U.S Reaction to XRP ETF Approval in Brazil

Brazil’s XRP ETF now serves as a real-world test case for U.S. regulators. The SEC can observe how the fund performs in terms of market stability, liquidity, and investor behavior without exposing U.S. markets to immediate risk. 

If the Brazilian ETF demonstrates strong performance and maintains compliance, it could pave the way for a more favorable regulatory climate in the U.S.

The SEC is already reviewing several XRP ETF applications from major firms such as CoinShares, Canary Capital, and WisdomTree. 

Although these applications remain under scrutiny, Brazil’s success story could reignite public commentary and accelerate the decision-making process.

The approval of the XRP ETF in Brazil has far-reaching implications beyond just XRP. It challenges the U.S. to reconsider its approach to cryptocurrency ETFs and could act as a catalyst for broader crypto adoption within regulated financial markets. 

Read Also: How to Buy XRP

As Brazil takes the lead in integrating crypto into traditional finance, the U.S. faces mounting pressure to keep pace or risk falling behind in the rapidly evolving world of digital assets. 

The coming months will reveal whether the SEC will follow Brazil’s example or maintain its cautious stance, but one thing is clear: the landscape for XRP ETFs has fundamentally shifted.