Banco Nacional Launches Bitcoin ETF in Costa Rica

Introduction
State-owned Banco Nacional (BN), the largest commercial bank in Costa Rica and a leading bank in Central America with over $7 billion in assets, is launching a spot bitcoin exchange-traded fund (ETF) through its investment management arm, BN Fondos, according to local reports.

This initiative marks the first time Costa Ricans will have access to any type of crypto investment product through the country’s banking system.

Along with the bitcoin ETF, the firm is also introducing an S&P 500 ETF. The minimum investment for each fund is $100, with investments accepted in U.S. dollars rather than Costa Rican colones.

According to Pablo Montes de Oca, general manager at BN Fondos, “Costa Rican 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.”

Banco Nacional currently serves over 2.1 million customers in Costa Rica, which amounts to more than 40% of the country’s population.

Legal Context
While Costa Rica lacks formal crypto laws, the country’s constitution and civil code allow for activities that are not explicitly forbidden by law. This means Costa Ricans can technically trade and own cryptocurrencies as no laws prohibit it.

A comprehensive crypto regulation bill known as the Crypto Asset Market Law was introduced in 2022 but has stalled at the commission level. This bill aimed to regulate the use of cryptocurrencies for payments but stopped short of making any — including bitcoin — legal tender.