Argentina Welcomes U.S. Crypto ETFs, Paving the Way for Overseas Capital Inflow

• Argentina has opened its doors to US-based crypto ETFs and other capital market products.
• The grand move aligns with the push to fight hyperinflation in the country.

Argentina’s Board of Directors of the National Securities Commission (CNV) has announced the approval of the U.S. Exchange-Traded Fund (ETF). This allows Argentine residents to begin trading crypto-related ETFs, including those based on Bitcoin (BTC) and Ethereum (ETH).

Argentina Positions for Overseas Capital Inflow With Crypto ETFs

The Argentine’s financial regulator announced the approval of the new ETFs under the  CEDEAR’s program, regulated by RG No. 1030. Spot Bitcoin and Ethereum ETFs are set for release under this program, initially prohibited under Law No. 27440 for 6 years. 

The approval of these Bitcoin and Ethereum ETFs opens the door to investing in digital assets through the capital market. However, there are no details of which Bitcoin or Ethereum ETF issuer will join the country.

CNV President Roberto E. Silva commented, “It is a pleasure to announce these first approvals, which constitute new investment options provided for in this very innovative law.” “With these initiatives, we are raising Argentina to the standards of the most developed international markets,” Silva added.

CNV revealed in the same document that gold ETFs can enter the capital market using the GLD ticker. Additionally, CNV has permitted Chinese stock market indexes with the FXI ticker and the S&P500 index.

The regulators anticipate that these instruments boost passive management indices, commodities, and digital assets listed abroad and not publicly offered in Argentina.

Argentina Expands Blockchain Initiatives

The approval of the new crypto ETFs highlights Argentina’s continuous efforts in the blockchain space. According to a CNF report, Spanish firm Prosegur Cash recently inaugurated Argentina’s first cryptocurrency storage bunker through its Prosegur Crypto division. The bunker offers corporate clients a secure environment to store their private keys and cryptocurrencies offline.

Before this update, CNF reported that the Argentine Revenue and Customs Agency (ARCA) had updated its economic classifier to include crypto services. The revision covers crypto-related services like mining, crypto custody, and peer-to-peer transactions. 

Furthermore, the Central Bank of Argentina (BCRA) recently publicly showcased Bitcoin mining equipment in an art exhibition. The exhibition features the works of Alberto Echegaray, an artist renowned for exploring digital and crypto art. 

Echegaray’s works, including his well-known “Moneyballs,” spheres packed with shredded banknotes, reflect on the transition from physical to crypto forms of currency. Echegaray’s work at the BCRA encourages visitors to think about the future roles of money and the economic structures that control its use. The exhibition also challenges traditional notions of currency and its tangibility.

Drawing on crypto ETF and stock embrace, Argentina, through President Javier Milei’s vision, is to fight against hyperinflation and drive the country’s digital economy. Inflation, which skyrocketed to about 300% in April 2024, has decreased to under 200% in less than a year.