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How to invest in cryptocurrencies at Rico?

Posted by on January 21, 2022, tagged as

The cryptocurrency market has become increasingly popular among investors looking to leverage portfolio gains.

This is because, due to the strong volatility, cryptos offer the possibility of high gains in a short period of time.

Seeking to meet the demand of investors, the broker Rico offers two ways to invest in cryptocurrencies: ETFs (exchange traded fund) or Investment Funds. To learn more, follow our article!

How to invest in cryptocurrencies in Rico?

Cryptocurrencies are currencies traded exclusively digitally, that is, there are no physical issues, all transactions are carried out online.

So, through computers all over the world, the cryptocurrencies are created and their transactions are recorded through a technology called blockchain.

Because of this, it is classified as a decentralized asset, so it is not controlled by any specific agency or country.

For those who want to invest in Brazil in a safe and regulated way, the Rico stockbroker offers the following options:

Cryptocurrency investment funds

Cryptocurrency investment funds are those that have part of their investments allocated to cryptoassets.

In this sense, funds must observe specific exposure percentages to cryptocurrencies, regulated by the Brazilian Securities Commission (CVM).

A good part of these investments usually have 20% of cryptoactive assets and 80% of fixed income in their composition. But generally speaking, the greater the fund's exposure to cryptocurrencies, the greater its risk.

To purchase a cryptoactive fund, simply access your stock broker and search for the options offered.

At Rico, for example, since October 2021, shares of two passively managed crypto-asset funds have been traded:

  • Trend Crypto Dollar FIC FIM: The Fund has exposure to the Nasdaq Crypto Index (NCI), which tracks the performance of a basket of cryptocurrencies that includes Bitcoin, Ethereum and Litecoin.
  • Trend Bitcoin Dollar FIC END: invests only in Bitcoin, the most popular and valuable cryptocurrency in the world.

Both funds have an initial investment of R$100,00 and are available to the general public.

How to invest in cryptocurrencies at Rico?

ETFs in cryptocurrencies

Another way to invest in cryptocurrencies by Rico is through ETFs, which are nothing more than funds that seek to replicate a theoretical cryptocurrency portfolio.

Currently, Brazilian investors can count on 5 of the alternatives regulated by the CVM to invest their resources in crypto ETFs. Check it out below:

  • HASH11

O HASH11 is an ETF that is linked to the NCI (Nasdaq Crypto Index), an index created through a partnership between Nasdaq and Hashdex.

It is an alternative that allows exposure to eight cryptocurrencies, with a greater weight than bitcoin (67,17%). Next comes Ethereum (28,23%), Litecoin (1,10%), Chainlink (0,89%), Bitcoin Cash (0,80%), Stellar Lumens (0,53%), Filecoin (0,59 %), Uniswap (0,69%).

So, in practice, whoever buys a share of HASH11 is investing in the possibility of yield of major cryptocurrencies combined.

Each HASH11 quota was worth about BRL 43,00 in January 2022.

  • QBTC11

Another cryptocurrency ETF option that you can find at rico’s home broker is QBTC11.

In this case, the wallet is exposed exclusively to Bitcoin. Therefore, this fund will not invest in any other cryptocurrency.

The fund is managed by QR Asset Management and the ETF is linked to the bitcoin futures contracts index of the Chicago Mercantile Exchange (CME).

In January of this year, QBTC11 was trading in the range of BRL 15,00.

  • BITH11

O BITH11 is another option for those who want to expose themselves only to Bitcoin, the difference here is up to the manager, in this case, Hashdex.

Another differential of this investment is that it promises to be sustainable, as it was created with the aim of neutralizing the carbon emissions generated by cryptocurrency mining.

It replicates the Hashdex Nasdaq Bitcoin Reference Rate Index Fund, an index created in partnership between Hashdex and Nasdaq.

Any investor can purchase this ETF at Rico, with the minimum investment being 1 share whose initial value is approximately R$55 in January 2022.

  • QETH11

O QETH11 is the first Ethereum ETF in Latin America and invests at least 95% of its equity in Ethereum, considered the second largest cryptocurrency in the world.

The Fund, managed by QR Asset, replicates the performance of the Chicago Stock Exchange's CME CF Ether Reference Rate index.

To acquire a share of the asset in January 2022, the investor paid around BRL 13,00.

  • ETHE11

O ETHE11, managed by Hashdex, also has full exposure to Ethereum crypto.

The asset follows the Nasdaq Ethereum Reference Price (NQETH) index developed by Nasdaq. This index provides the real-time ethereum benchmark price.

In January, ETHE11 was traded in the range of BRL 50,00.

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