Costa Rica Enters the Crypto Market with First-Ever Bitcoin ETF
For the first time, Costa Ricans will have access to a crypto investment product through the nation’s banking system.
Banco Nacional (BN), the largest state-owned commercial bank in Costa Rica and a major financial institution in Central America with over $7 billion in assets, is set to launch a spot bitcoin exchange-traded fund (ETF) through its investment management arm, BN Fondos, according to local reports.
This move marks a significant milestone for the country’s financial sector, providing investors with a regulated way to gain exposure to bitcoin. Alongside the bitcoin ETF, the firm is also rolling out an S&P 500 ETF. Investors can participate with a minimum of $100, with all investments denominated in U.S. dollars rather than the local Costa Rican colón.
“Costa Rican regulations don’t allow direct investments in assets that aren’t considered investment vehicles, and bitcoin itself doesn’t qualify under current rules. However, an ETF does,” explained Pablo Montes de Oca, general manager of BN Fondos.
Banco Nacional serves more than 2.1 million customers, covering over 40% of Costa Rica’s population.
While Costa Rica lacks formal crypto legislation, its constitution and civil code follow a principle where activities not explicitly prohibited by law are permitted. This legal framework allows Costa Ricans to trade and hold cryptocurrencies without restrictions.
Efforts to establish comprehensive crypto regulations have stalled. The Crypto Asset Market Law, a bill introduced in 2022, sought to regulate crypto transactions and permit their use for payments without granting bitcoin or any other digital asset the status of legal tender. However, the proposal has remained stuck at the commission level within the Legislative Assembly.
