Costa Rica’s largest state-owned bank, Banco Nacional (BN), has released the country’s first Bitcoin exchange-traded fund (ETF). Banco Nacional Introduces First Bitcoin ETF According to local reports , the bitcoin ETF will be introduced through BN’s asset management arm, BN Fondos. This will be the first time Costa Ricans can access a regulated crypto investment through the banking system. Alongside the Bitcoin ETF, the bank is also rolling out an S&P 500 ETF. This will provide investors with a more traditional option. Meanwhile, the minimum investment for both funds has been set at $100. Similarly, all transactions will be in U.S. dollars instead of Costa Rican currency. Furthermore, Pablo Montes de Oca, general manager at BN Fondos, explained how the fund relates to existing regulations when speaking on this development. “[Costa Rican] regulation doesn’t permit investments in things that aren’t investment vehicles, and bitcoin isn’t considered an investment vehicle from a regulatory perspective, but the ETF is,” he stated. This is why the bank has chosen to follow the ETF approach like every other corporate investor has been doing in recent weeks since the introduction of the Bitcoin ETF . Crypto Investments in a Country Without Regulations It is worth noting that Costa Rica does not have written cryptocurrency laws. However, under the country’s constitution and civil code, activities that are not explicitly prohibited are considered legal. This has enabled Costa Ricans to buy, sell, and hold crypto assets without fear of restriction. However, because of this regulatory nature, the government has advised the citizens and investors to be very mindful and cautious when trading cryptocurrency. This recent development is very laudable because Banco Nacional serves over 2.1 million customers. Data shows that more than 40% of the country’s population will now lead the way by offering a more secure and regulated way to invest in Bitcoin. Many investors believe that this is a good step in the right direction. This is simply because, previously, crypto investments were only accessible through private platforms outside the banking system. The Future of Crypto Regulation in Costa Rica According to reports, the introduction of this ETF came at a time when Costa Rica’s government had yet to establish clear rules for cryptocurrency. In 2022, lawmakers proposed the Crypto Asset Market Law to provide a framework for digital currency transactions. However, the bill stalled at the commission level and has not advanced. The proposed legislation did not seek to make Bitcoin or any other cryptocurrency legal tender but aimed to define how businesses could accept digital assets as payment. For now, Banco Nacional’s move offers a regulated investment alternative while the country continues debating its crypto approach. Meanwhile, in related news, Brazil’s securities regulator, Comissão de Valores Mobiliários (CVM), has given the green light to the country’s first-ever spot XRP exchange-traded fund (ETF). The post Costa Rica Launches First Bitcoin ETF Product: Details appeared first on TheCoinrise.com .
