BlackRock Introduces Ethereum ETF ETHA39 on B3 Exchange in Brazil with Competitive 0.12% Fee

Brazil’s financial authorities have given the green light to BlackRock to list its Ethereum (ETH) Exchange Traded Fund (ETF), ETHA, on the local B3 exchange. The ETF is set to launch today with a starting price anticipated to range between $7.26 and $9.0, coupled with a reduced management fee of 0.12%.

ETHA’s structure involves an international asset receipt (BDR) and will be listed under the code ETHA39. It is categorized as Brazilian Depositary Receipts (BDR), representing shares issued by foreign companies. The asset’s value is expected to be approximately one-third of BlackRock’s iShares Ethereum Trust (ETHA), translating to an initial price range between R$40 and R$50 ($7.26 and $9.0), depending on market dynamics. Furthermore, the BDR is projected to have a waived management fee for the first year, subsequently settling at 0.12% for the initial $2.5 billion in Assets Under Management (AUM).

Nicolas Gomez, BlackRock’s head of ETFs, index investments, and products for Latin America, highlighted that this development provides regional investors direct exposure to major cryptocurrencies by market capitalization. Additionally, Cristiano Castro, BlackRock’s director in Brazil, suggested that ETHA39 could significantly bolster various blockchain applications.

Despite the promising news, the price of Ethereum has not seen a significant uptick, remaining 8% lower over the past 24 hours and trading below $2,500.

In another significant move earlier this year, BlackRock launched its iShares Bitcoin Trust ETF (IBIT) in Brazil with a 0.25% management fee, potentially reducing to 0.12% in the first year. Felipe Gonçalves, B3’s superintendent of interest and currency products, attributed this launch to the escalating demand for this asset class in Brazil.

BlackRock’s ETHA has achieved a remarkable milestone, becoming the first issuer to amass $1 billion in net inflows. This surpasses the net inflows of other prominent offerings such as Fidelity’s FETH, Bitwise’s ETHW, and Grayscale’s ETH. With $860 million in net assets, ETHA has outperformed Grayscale’s mini ether trust (ETH) and Ethereum trust (ETHE). Additionally, BlackRock’s Bitcoin fund has secured a position in the top five ETFs, including non-crypto ones, based on the 2024 inflows.

Brazil is progressively embracing the cryptocurrency asset class, with its Securities and Exchange Commission (CVM) recently approving the second Solana ETF. This upcoming SOL ETF, offered by Brazil-based asset manager Hashdex in collaboration with local investment bank BTG Pactual, is poised to influence the US’s approval considerations, as suggested in recent reports.