BlackRock Introduces Ethereum Exchange-Traded Fund on B3 Stock Exchange Brazil

BlackRock has broadened its range of digital currency offerings in Brazil by introducing the iShares Ethereum Trust (ETHA) through a share receipt (BDR) on the B3 stock exchange. This move comes on the heels of the successful launch of BlackRock’s Bitcoin ETF (IBIT39) in Brazil, marking another significant stride towards making crypto assets more accessible to Brazilian investors.

The iShares Ethereum Trust, denoted by the ticker ETHA39, caters to both retail and institutional investors. The initial trading price of the ETF is anticipated to fall within the range of R$40 and R$50, representing about one-third of the value of the original asset that underpins the BDR. The management fee for the ETF stands at 0.25% annually, in line with the fee structure in the United States. However, during the initial year of trading or until the ETF reaches $2.5 billion in assets under management (AUM), the fee will be reduced to 0.12%, enhancing its appeal to investors.

Cristiano Castro, BlackRock’s director in Brazil, highlighted that the launch is a response to the escalating demand for crypto-related products in the country. He pointed out the success of the iShares Bitcoin Trust as evidence of this demand, noting its rapid growth to become the fastest-growing ETF in history over a three-month period. BlackRock’s strategy is to meet this demand by facilitating access to digital products within the capital market.

Before its introduction in Brazil by BlackRock, the original iShares Ethereum Trust was launched in the United States in June 2024 and swiftly emerged as the most liquid cryptocurrency fund, with 80% of its trading volume originating from individual investors. The Brazilian market, which has witnessed significant growth in crypto trading, now boasts 15 ETFs or BDRs linked to digital assets. Despite the presence of multi-asset funds in Brazil, the reputation and established governance of BlackRock are expected to attract investors to ETHA39.

This launch underscores Brazil’s status as a pivotal market for crypto investments, with nearly 180,000 investors holding crypto products valued at approximately R$5.5 billion. As the demand for digital assets continues to surge, BlackRock’s Ethereum ETF is poised to play a crucial role in the evolving landscape of Brazil’s financial market.