Nubank, the largest bank in Brazil, announced on May 11 that it will de opportunity to trade Bitcoin (BTC) and Ethereum (ETH). The bank indicated that clients will be able to trade these two cryptocurrencies for a minimum of 1 Brazilian real. Clients could previously invest in cryptocurrencies at this bank, but they could only do this through exchange traded funds (ETFs)
Strong growth in popularity of BTC and ETH
David Vélez, CEO and co-founder of Nubank, has said that cryptocurrencies have grown in popularity. He also indicated that cryptocurrencies can change the world.
Nubank is the largest fintech bank in Latin America. In addition, this bank only functions as an online bank and offers many different innovative products and services. The bank works within several companies, and agencies such as Sequoia Capital and Berkshire Hathaway invest in Nubank.
Clients do not need to create a special account but can simply use their current account to buy these cryptocurrencies. This is a big advantage as it makes it easier for these users to enter the market.
Cryptocurrencies are very popular in Latin America. Some countries allow more in this sector than others, however we are clearly seeing more and more banks embracing cryptocurrencies.
Nubank’s good timing
Or this decision by the bank may come at the wrong time. Bitcoin’s price has corrected hard in recent days, even touching $26,700 and Ethereum dropping to a low of $1,700.
It is currently not a good time to launch crypto related products or services. Another product that will hit the market is Australia’s first bitcoin ETF. This ETF will launch on May 12.