WhatsApp says that file sharing is end-to-encrypted as well. But there's no word on the maximum file size allowed by WhatsApp. Seeing how it's nearby sharing we're expecting this feature to be capable of sharing large sized files that would otherwise not be possible through the app. It might also be possible to share files without internet connectivity like Google does with Nearby Share.
WhatsApp's file sharing feature is still being tested, and there's no word on when it will be available to all users. But we should see it on the beta platforms soon.
The same WhatsApp beta for Android 2.24.2.20 update also comes with a bug fix for a camera issue. Some beta testers were unable to start the camera after downloading a beta update. Turning it on would trigger users to restart the device. Now this issue has been fixed with the latest WhatsApp beta update so the camera should work just fine.
You can download the latest beta update from the Google Play Store.