Costa Rica’s Largest Bank to Launch Country’s First Bitcoin ETF

Costa Rica's Largest Bank Launches Country's First Bitcoin ETF with $100 Minimum Investment

  • Costa Rica’s largest bank, Banco Nacional, is introducing the country’s first Bitcoin ETF through its investment arm.
  • The minimum investment threshold is set at $100, with transactions conducted in U.S. dollars.
  • BN Fondos is simultaneously launching an S&P 500 ETF alongside the bitcoin investment vehicle.
  • The bank serves over 2.1 million customers, representing more than 40% of Costa Rica’s population.
  • While Costa Rica lacks formal crypto regulations, cryptocurrency ownership and trading are permitted by default.

Costa Rica’s state-owned Banco Nacional (BN), a financial powerhouse managing over $7 billion in assets, is breaking new ground in Central American banking by introducing the region’s first spot bitcoin exchange-traded fund (ETF) through its investment subsidiary BN Fondos, according to local media reports.

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The initiative marks a significant milestone as Costa Ricans gain their first access to cryptocurrency investments through traditional banking channels. BN Fondos General Manager Pablo Montes de Oca explained the regulatory framework, stating, “regulation doesn’t permit investments in things that aren’t investment vehicles, and bitcoin isn’t considered an investment vehicle from a regulatory perspective, but the ETF is.”

The bank’s strategic move includes parallel launches of both the bitcoin ETF and an S&P 500 ETF, with both products requiring a minimum investment of $100. Notably, investments will be denominated in U.S. dollars rather than Costa Rican colones, potentially appealing to investors seeking dollar-based assets.

The regulatory landscape in Costa Rica remains relatively open, operating under a permissive framework where activities not explicitly prohibited are considered legal. A proposed Crypto Asset Market Law, introduced in 2022, aimed to formalize cryptocurrency usage for payments while stopping short of declaring any cryptocurrency as legal tender. However, the legislation has stalled at the commission level.

With Banco Nacional serving more than 40% of Costa Rica’s population through its 2.1 million customer base, this ETF launch could significantly impact cryptocurrency adoption in Central America, potentially setting a precedent for other regional financial institutions to follow suit.

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