BlackRock Launches Ethereum ETF on B3 Stock Exchange in Brazil
BlackRock will launch the Brazilian Ethereum ETF (ETHA39) via BDR on the B3 stock exchange. The initial transaction price, which is set between R$40-R$50, has been cut in half to 0.12 percent in the first year. Brazil now has 15 crypto-linked ETFs.
BlackRock has expanded its crypto product portfolio in Brazil by launching the iShares Ethereum Trust (ETHA) in Stock Receipt (BDR) on the B3 stock exchange.
This follows the successful launch of BlackRock's Bitcoin ETF (IBIT39) in the country, another important step in making crypto assets more accessible to Brazilian investors.
The initial transaction price ranges between R$40 and R$50
The iShares Ethereum Trust, trading on ticker ETHA39, is designed to cater to both retail and institutional investors.
The initial trading price of the ETF is expected to be between R$40 and R$50, which represents one-third of the value of the underlying asset backing the BDR.
The ETF's management fee is set at 0.25% per annum, which mirrors the fee structure in the United States. However, in the first year of trading, or until the ETF's assets under management (AUM) reach $2.5 billion, the fee is halved to 0.12%, making it more attractive to investors.
Demand for crypto-related products in Brazil
Cristiano Castro, director of BlackRock in Brazil, emphasized that the opening is a response to the growing demand for crypto-related products in the country. He cited the success of the iShares Bitcoin Trust as evidence of this demand, noting that it has historically experienced the fastest growth over a three-month period.
According to Castro, BlackRock's strategy is to meet this demand by facilitating digital products in the capital market.
Prior to Blackrock's launch in Brazil, the first iShares Ethereum Trust launched in the United States in June 2024 and quickly became the most liquid cryptocurrency fund, with 80% of its trading volume coming from individual investors.
Brazil's booming crypto market now offers 15 ETFs or BDRs linked to digital assets. Despite existing multi-asset funds in Brazil, BlackRock's reputation and established management are expected to attract investors to ETHA39.
This launch highlights Brazil's position as a key market for crypto investments, with approximately 180,000 investors holding approximately R$5.5 billion worth of crypto products.
As demand for digital assets continues to grow, the BlackRock Ethereum ETF is poised to play a pivotal role in the growth of Brazil's financial market.
