Banco Nacional Launches Bitcoin ETF in Costa Rica
In a groundbreaking move for the Central American financial landscape, Banco Nacional (BN), the largest commercial bank in Costa Rica and a significant player in the region with over $7 billion in assets, is set to launch a spot bitcoin exchange-traded fund (ETF) through its investment management division, BN Fondos. This initiative, as reported by local sources, represents a historic opportunity for Costa Ricans to gain access to cryptocurrency investment products via the national banking system.
Alongside the bitcoin ETF, BN Fondos is also introducing an S&P 500 ETF, providing investors with diversified options. Both funds require a minimum investment of $100, and transactions will be conducted in U.S. dollars rather than the local Costa Rican colón.
According to Pablo Montes de Oca, the general manager at BN Fondos, the regulatory framework in Costa Rica presents unique challenges. He explained, “Costa Rican regulation doesn’t permit investments in things that aren’t classified as investment vehicles, and bitcoin isn’t considered an investment vehicle from a regulatory perspective, but the ETF is.” This distinction is crucial for facilitating investment in cryptocurrencies within the current legal framework.
Banco Nacional serves a vast customer base of over 2.1 million individuals, accounting for more than 40% of the country’s population, which underscores the bank’s pivotal role in the financial ecosystem of Costa Rica.
Although Costa Rica lacks formal legislation specific to cryptocurrencies, the nation’s constitution and civil code stipulate that any activity not explicitly prohibited by law is permitted. Consequently, Costa Ricans can legally trade and own cryptocurrencies due to the absence of laws that restrict such activities.
In 2022, a comprehensive regulatory proposal known as the Crypto Asset Market Law was presented to the Legislative Assembly. However, the bill encountered bureaucratic obstacles and remains stalled at the commission level. The proposed legislation aimed to regulate the use of cryptocurrencies for transactions involving goods and services in Costa Rica, yet it did not intend to grant any cryptocurrency, including bitcoin, legal tender status.
