Berkshire Hathaway invests in Brazilian digital bank giant "Nubank", whose services include a Latin American Bitcoin ETF?

Despite his numerous criticisms of Bitcoin, Warren Buffett's investment company Berkshire Hathaway has invested $500 million in the Brazilian digital bank Nubank. Nubank, which acquired the brokerage platform Easynvest last year, offers trading products including a Bitcoin ETF.

Selected as one of TIME's Top 100 Influential Companies

According to a press release, Nubank has been selected as one of TIME's Top 100 Influential Companies this year, and has also been recognized by CNBC as one of the top 50 disruptive startups. With over 40 million users in Brazil, Mexico, and Colombia, the $500 million raised in this round of funding will continue to support its international expansion.

The CEO of Nubank, David Vélez, stated:

Approximately 50% of the population in Latin America still does not have a bank account. The average credit card penetration rate is only 21%, while in the United States it is over 70%. This new funding will help us continue democratizing financial services globally.

Prior to this, David Vélez mentioned to the Wall Street Journal that Nubank is likely to go public, but there are currently no concrete plans in place.

Buffett's Connection to Bitcoin Sparks Debate

Founded by David Vélez in 2013, Nubank quickly rose to prominence as a purely digital bank due to the bureaucratic nature of the Brazilian financial system, where at least a quarter of the population lacks access to financial services. In recent years, top investors in Nubank have included Sequoia Capital, Tencent, and Tiger Global.

Berkshire Hathaway, under Buffett's leadership, previously invested in the Brazilian financial startup StoneCo, making it reasonable for them to invest in Nubank as well. However, what has raised eyebrows is Nubank's acquisition of the brokerage platform Easynvest in September 2020.

Previous Criticisms of Bitcoin and Commission-Free Trading Platforms

Easynvest offers the Bitcoin ETF "QBTC11" issued by QR Capital, the largest cryptocurrency asset management company in Latin America.

This move brings to mind Buffett's past criticism of Bitcoin as "rat poison squared." Additionally, Berkshire Hathaway's Vice Chairman Charlie Munger has expressed disdain for the entire cryptocurrency industry, and strongly criticized commission-free trading platform Robinhood:

No one should believe that trading on Robinhood is free. The current speculative frenzy is being driven by collecting commissions and other revenues from this new breed of gambling users. The culture of constantly encouraging the public to bet on stocks is really stupid. It's a very dirty way of making money.

Ironically, Easynvest's distinctive feature is its commission-free investment model, and it ensures that customers' funds remain unchanged until the business is approved by regulatory authorities.