Argentina is opening up to global investments by allowing access to investment funds (ETFs) based on cryptocurrencies such as Bitcoin and Ethereum, as well as gold. The move aims to diversify investments and strengthen the economy by attracting foreign funds, while providing Argentines with a way to protect their money against inflation and currency devaluation.
Argentina connects to global markets: Bitcoin, Ethereum and Gold
Argentina's regulator, the Comisión Nacional de Valores (CNV), is opening its stock market to Exchange Traded Funds (ETFs), allowing Argentine investors to turn to Bitcoin and Ethereum ETFs.
CNV President Roberto E. Silva recently announced the approval of the first CEDEAR programs. These are investment programs created in Argentina aimed at allowing local investors to acquire foreign shares, particularly those of American companies, through depository receipts.
This program was established to facilitate access for Argentine investors to international markets and promote the integration of the Argentine economy into the global financial community.
With these initiatives, we are raising Argentina to the standards of the most developed international markets.
Among the new possibilities offered, CEDEAR will now make it possible to invest in ETFs focused on cryptocurrencies, such as Bitcoin and Ethereum. The initiative also includes the introduction of CEDEAR to invest in gold through the GLD ETF, as well as global stock indices, such as the FXI ETF which tracks the Chinese market.
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With this new regulation, CNV hopes to encourage the creation of new CEDEARs allowing investment in ETFs that replicate passive management indices, commodities and virtual assets, listed internationally but not available in Argentina.
These developments mark a key step towards modernizing and diversifying the capital market in the country. This should also allow Argentina to catch up with the United States, where such investments are already authorized.
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Towards a more resilient economy: ETFs as a solution for Argentina
Argentina, in the grip of a prolonged economic crisis, marked by galloping inflation, high public debt and a devaluation of its currency, must imperatively open up to international financial markets.
Access to these markets aims to diversify Argentina's sources of financing while attracting foreign investment, essential levers for stabilizing the economy and restoring investor confidence.
In this strategy, ETFs play a crucial role by offering investors the opportunity to diversify their portfolios, by combining stocks, bonds and commodities, while being listed on local exchanges. The advantage of these assets listed on local exchanges lies in the ease of access and reduced barriers for Argentine investors.
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For Argentina, the introduction of ETFs based on international assets would not only diversify local investments, but also connect the Argentine financial market to global markets that are more liquid and less volatile than the domestic market.
Faced with high inflation and persistent economic instability, Argentines are seeking to preserve their savings by turning to more stable and global assets. The rapid collapse of the peso is pushing many citizens to invest in safe havens such as gold, the US dollar or cryptos.
Argentina needs this geographic and sectoral diversification, which represents an accessible and beneficial solution to mitigate internal economic risks.
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Source: Argentina.gob.ar
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