Bitcoin’s popularity has reached new shores. Brazil ousted Nigeria, Africa’s largest economy, of the second spot, now trailing behind El Salvador, which has retained its position in the numero uno spot, a title held since 2022. The change in rankings for Nigeria is attributed to its growing preference for the USDT stablecoin over BTC, as indicated by Google Trends data.
The bullish sentiment towards Bitcoin in Brazil, the largest economy in Latin America, is well-established, with the flagship cryptocurrency witnessing a remarkable 160% surge this year. The enthusiasm has further intensified with the anticipation of approval for a spot bitcoin exchange-traded fund [ETF] in the United States. Brazil is experiencing an increased demand for such investment vehicles, which have been actively traded in the country for over two years.
The total assets under management [AUM] for these ETFs in Brazil have reached nearly $97 million as of November 21. Hashdex’s Nasdaq Bitcoin Reference Price FDI [BITH11] dominates the pack with $57.8 million in AUM, commanding a market share of around 60%. Marcelo Sampaio, CEO and founder of Hashdex attributes the success of Bitcoin ETFs in Brazil to pro-market digital asset regulation and growing interest from large institutions.
Banking Giant’s Entry Change Brazil’s Bitcoin Landscape
The recent entry of Itaú Unibanco, Latin America’s largest bank, into Bitcoin and Ethereum trading is seen as a pivotal moment by industry experts, signifying further acceptance of digital assets in the nation. Brazil, alongside the United States and Australia, is poised to achieve one of the world’s highest crypto adoption rates, given its population of 214 million, according to a study by HedgewithCrypto.
Conversely, Nigeria, while losing its second spot globally, remains a notable player in the crypto market, serving as a significant transactional tool. However, the nation is gradually ceding ground to more crypto-friendly countries such as the United Kingdom, the United Arab Emirates, and Brazil. Despite this shift, Nigeria continues to lead in cryptocurrency adoption in Africa and globally, boasting a 9% annual growth rate, according to a Chainalysis report. The country has consistently ranked among the top three nations with sustained growth since 2021.
