Galaxy Digital and the most extensive private asset management in Latin America, Itaú Asset Management, joined together to establish a bitcoin ETF in Brazil, marking the latest instance of crypto and TradFi interacting, according to the official report published by American Securities and Exchange Commission

However, a whole variety of physically-backed cryptocurrency ETFs has been built in Brazil by the crypto unit in collaboration with renowned hedge fund firm Itaú Asset Management. The first will trade on Thursday on the B3 Stock Exchange and is called the IT Now Bloomberg Galaxy Bitcoin ETF (BITI11).

Itaú Asset Management, a Brazilian company founded in 1957, manages assets worth over 165 billion US dollars. The parent company Itaú Unibanco has more than 65 million customers and operates in 18 countries.

As stated in a press release from the company:

The partnership combines the strength and expertise of Galaxy as one of the most experienced players in the global digital asset space with the solidity and credibility we have built at Itaú Asset over more than 60 years,

Renato Eid Tucci, Head of Itaú Asset Management’s beta technique and ESG integration, also explained:

After collaborating with central fund Invesco in September 2021, Galaxy entered into its most recent cooperation. The following month, the Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF and the Invesco Alerian Galaxy Crypto Economy ETF (SATO) both had their US debuts.

Moreover, the firm partnered with Canada-based CI Global Asset Management and launched blockchain and metaverse ETFs with the Toronto Stock Exchange corporation in May.

Hub Of Crypto Adoption Through Bitcoin ETF 

Steve Kurz, Galaxy’s global head of asset management, said that Galaxy had to invade what he called a hub of crypto adoption. Despite hundreds of failed attempts, the US has yet to authorize a spot bitcoin ETF, even though multiple spot bitcoin ETFs trade on Canadian platforms.

In addition, Steve Kurz said that with the agreement, Galaxy would probably try to provide an ether-focused ETF and other diverse approaches to Brazil. He continued by saying that Galaxy may keep an eye on alternatives in the European and Asian markets.

Steve said:

as the institutionalization of the cryptocurrency market progresses, it plays a huge role for blue chip companies like Galaxy to act as partners for large institutions that have significant customer bases but lack the internal know-how to create and create high-quality crypto products.

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However, in September, Brazil-based digital financial institution Nubank stated that its crypto platform had 1.8 million customers. In June 2021, Brazil saw the introduction of the first bitcoin ETF in Latin America by QR Asset Management. Hashdex and other companies have also discovered funds focused on cryptocurrencies there.

Galaxy’s wealth administration arm managed roughly $2 billion in belongings throughout passive, lively, and enterprise methods as of October 31. Toronto-listed Galaxy inventory is down 36% over the previous week and 83% year-to-date.