XRP ETF Debuts in Brazil, Argentina Keeps Winning the Dollar Battle, and Experts Warn About an Energy Collapse in Paraguay Due to Bitcoin Mining

Welcome to Latam Insights, a weekly crypto and economic roundup of the most relevant news from Latin America. In this week’s edition: the first XRP ETF debuts in Brazil, securing regulated access for investors; Argentina continues to surprise as it keeps winning the dollar battle; and experts warn of an energy collapse in Paraguay due to bitcoin mining.

XRP ETF Launches in Brazil, Securing Regulated Access for Investors

Global crypto asset manager Hashdex announced the launch of XRPH11, described as “the world’s first XRP ETF” and "another crypto milestone on the Brazilian stock exchange."

The launch marks a significant expansion of crypto investment products within Brazil’s regulated financial markets and underscores Hashdex’s ambition to drive innovation in the sector.

The asset management firm highlighted the significance of the XRP exchange-traded fund (ETF) for investors:

Hashdex just launched XRPH11, giving investors secure and regulated access to XRP — one of the leading crypto assets focused on fast, low-cost international payments. This milestone is the ninth crypto ETF launched by Hashdex in Brazil and its 33rd product offered globally.

The move comes after Brazil's securities regulator, CVM, approved the application for the first XRP ETF in April. Hashdex is known for its previous launches of bitcoin and ether ETFs in Brazil, catering to the growing demand for digital asset investment products.

The XRP ETF is set to begin trading on April 25, expanding the options available to investors in Brazil's B3 exchange.

Against All Odds, Argentina Is Beating the Dollar

President Mauricio Macri's administration faced a formidable challenge in transitioning Argentina's controlled currency to a free-floating band system without triggering explosive devaluation levels, especially with the threat of social unrest.

However, despite the odds, the South American nation appears to have successfully pulled off the feat.

The move, part of President Milei's campaign promises, encountered a market that did not turn to buy dollars outright and is instead cautiously optimistic about the future of the Argentine peso.

During Monday, the dollar exchange rate fell even further, closing at nearly 1,100 pesos per dollar, registering a 4% intraday drop.

Most notably, dollar futures dropped close to 6%, meaning the expectation is for further falls, even taking the exchange rate close to the central bank intervention spot: 1,000 pesos per dollar.

Alert: Bitcoin Mining Could Collapse Paraguay's Power Grid by 2029

Paraguay, a country that has faced an intense influx of cryptocurrency mining companies seeking to take advantage of cheap hydroelectricity, might be facing difficulties due to the increase in these activities.

According to the Paraguayan Industrial Union (UIP), if the demand keeps increasing and there is no increase in power generation, the collapse might be slated to happen as early as 2029.

Julio Fernández, head of the Center for Economic Studies of the UIP, raised the alarm about how the demand has grown exponentially over the last years.

Itaipu and Yacyreta are no longer enough. We’re consuming more than one Itaipu turbine per year.

Paraguay’s electricity is generated almost entirely by the Itaipu dam, which produced 83.879 TWh in 2023.

For more crypto and economic news from Latin America, subscribe to the Latam Insights newsletter.

Get the scoop directly to your inbox.

See the original, full scope Chainwire coverage.

Credit: Benzinga