Key Points
- Argentina introduces digital asset investment through exchange-traded funds (ETFs), CEDEARs.
- Argentine investors can gain exposure to Bitcoin and Ethereum ETFs without managing digital wallets and private keys.
Argentina has made a significant move in digital asset investment by introducing a new range of exchange-traded funds (ETFs), known as CEDEARs. This allows citizens to engage in new investment opportunities, providing them with access to diversified investments with global exposure.
Details about the CEDEARs Program
Under the CEDEARs program, five new instruments have been introduced. These allow investments in gold, Bitcoin (BTC), and Ether (ETH), the two main cryptocurrencies, along with exposure to the Chinese market or betting against the Wall Street S&P 500 through its main companies.
Argentine investors can now gain exposure to the leading Bitcoin ETF IBIT and the prominent Ethereum ETF ETHA. These products enable investors to participate in the crypto market without the complexities of managing their digital wallets and private keys, which can be challenging for those lacking technical knowledge about crypto.
The Argentine Stock Exchanges and Markets (BYMA), in collaboration with Banco Comafi, a mid-sized universal bank in Argentina, has launched CEDEARs with the aim of “raising Argentina to the standards of the most developed international markets.” Roberto E. Silva, president of Argentina’s National Securities Commission (CNV), has welcomed these new investment options.
Cryptocurrency Adoption in Argentina
Cryptocurrency and stablecoin adoption have seen a significant surge in Argentina and throughout the Latin American region. Argentina is experiencing severe currency devaluation, with the Argentine peso dropping from massive highs in December 2011 to all-time lows. Currently, 1 USD is worth around 1013.50 Argentine pesos.
Due to the devaluing currency, Argentinians have turned to Bitcoin (BTC) and other cryptocurrencies as a store of value to preserve their net worth. Roberto Del Giudice, a producer agent at the CNV, has noted that these products were increasingly anticipated by the regional markets.
In the past 24 hours, Bitcoin (BTC) reached a new all-time high of $103,900.47, surpassing a significant psychological hurdle and claiming a $2 trillion market capitalization. The trading volume of the digital asset also saw a substantial increase of 131% to $138.06 billion, indicating increased demand from investors. Furthermore, on December 4, spot BTC ETFs recorded $556.82 million in total inflows, contributing to the surge in Bitcoin’s price.
The United States president-elect, Donald Trump, has announced Paul Atkins as the new chair of the Securities and Exchange Commission (SEC), establishing the trio of Atkins and SEC commissioners Mark Uyeda and Hester Peirce. With Bitcoin’s global adoption rising and increasing institutional demand for crypto exposure, investors are anticipating the approval of additional crypto ETFs, particularly for leading altcoins.
