Argentina’s National Securities Commission (CNV) has approved two resolutions establishing a regulatory framework for domestic exchange traded funds (ETFs). These products allow the performance of assets and benchmark indices, including Bitcoin (BTC), to be replicated directly under national law.
These are General Resolutions No. 1123 and 1124, which aim to incorporate these investment products into local regulatory areas and are subject to public consultation.
According to the proposed regulations, these products will be structured through two figures: Securities Certificates (CEVA) or Open Common Investment Fund (FCIA).
CNV Chairman Roberto Silva emphasized that the move is a “milestone for Argentina’s capital markets.” The official noted that this is the first time progress has been made on a domestic ETF system that “expands investment options and promotes investor diversification and access.”
The regulations ensure that these products are operated under conditions that ensure “appropriate controls, accounting segregation of the underlying assets, and transparency” in price formation. On top of that, Certain rules have been introduced to the unit creation and cancellation mechanismessential for facilitating arbitrage in the secondary market.
The modernization process promoted by CNV also includes amendments to the Argentine Certificate of Deposit (CEDEAR) and CEVA public offering regimes. This is to adjust to trends in the international market.
“This initiative incorporates modifications to make the regime more efficient, modern and in tune with international dynamics,” Silva said.
It is important to distinguish between what already exists on the market and what this new regulation proposes. From the end of 2024 onwards, investors in Argentina may gain exposure to Bitcoin through the local stock market through CEDEAR, according to a report from CriptoNoticias.
However, the digital asset CEDEAR, like BlackRock’s IBIT, is a “mirror” of funds listed and managed in the United States. The novelty of this resolution is that Fund managers and banks in Argentina launch their own products.
If finalized, the local subsidiary may issue an “Argentina Bitcoin ETF” that will be managed entirely within the country. This could not only lead to greater integration with other domestic financial products, but also reduce costs associated with international structures. Strengthen the liquidity of the national capital market.
Stakeholders and participants in the financial ecosystem will have 15 business days to submit comments and suggestions on these resolutions. At the end of this public consultation period, CNV will analyze proposals for a final draft of a standard that will formally enable the issuance of these products under local structures.
(Tag translation) Argentina
