BlackRock Expands Crypto Offerings in Brazil with New Ethereum ETF
BlackRock is broadening its global crypto product lineup, debuting its Ethereum exchange-traded fund (ETF) in Brazil. On August 28, the asset management giant listed the iShares Ethereum Trust (ETHA) on Brazil’s B3 stock exchange through a depositary receipt.
This move allows both retail and institutional investors in Brazil to trade the iShares Ethereum Trust under the ticker ETHA39. A depositary receipt is a financial instrument representing shares in a foreign company or fund, traded in the local currency and backed by the original asset. In this case, BlackRock is offering its Ethereum ETF at a price equivalent to one-third of the original share value. Management fees are set at 0.25% per year, matching U.S. rates, though fees will be halved to 0.12% during the first year of trading or until the fund manages $2.5 billion in assets.
This latest offering comes on the heels of BlackRock’s recent launch of the iShares Bitcoin Trust in Brazil, also via a depositary receipt. Cristiano Castro, BlackRock’s director in Brazil, noted the strong demand for crypto assets in the country, stating that the rapid growth of the Bitcoin ETF reflects significant investor interest. ”BlackRock’s strategy is to meet this demand and make it easier for investors to access these digital products within the capital market,” Castro said in a local interview.
Brazil has been a pioneer in allowing crypto-tied products on its stock exchange, B3. With the addition of BlackRock’s Ethereum ETF, investors in Brazil now have access to 15 ETFs or depositary receipts linked to digital assets. In July, local regulators also approved the world’s first spot Solana-based ETF, expected to launch soon.
According to B3’s director, Felipe Gonçalves, approximately 180,000 investors in Brazil hold crypto products valued at nearly 5.5 billion Brazilian reais (~$1 billion). The country’s crypto trading volume reached $6 billion in the first five months of 2024, a 30% increase from the previous year, highlighting Brazil’s growing role in the global crypto market.
Featured image from: coinengineer.com