BlackRock Introduces Ether ETF in Brazil

August 29, 2024 11:01 PM AEST | By Team Kalkine Media

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BlackRock Introduces Ether ETF in Brazil — Image source: Shutterstock

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BlackRock introduced its iShares Ethereum Trust (ETHA) to Brazil's stock exchange B3 through a depositary receipt, marking an expansion of its cryptocurrency product offerings in the region. This new Ethereum exchange-traded fund (ETF) is available for trading under the ticker ETHA39, catering to both retail and institutional participants.

A depositary receipt is a security that represents shares in a foreign entity or fund and is typically traded in the local currency while being backed by the underlying asset. For the iShares Ethereum Trust, the depositary receipt will be priced at one-third of the value of the original asset. Management fees for {Ethereum} (ETH) are set at 0.25% annually, aligning with those in the United States. However, during its first year of trading, or until the ETF's assets under management reach a specific threshold, these fees will be reduced to 0.12%.

This launch follows BlackRock's introduction of its iShares Bitcoin Trust in Brazil, also listed through a depositary receipt. The Brazilian market has been proactive in facilitating the trading of cryptocurrency-linked products, now featuring a total of 15 ETFs or depositary receipts related to digital assets. Additionally, in July, Brazilian regulators approved the world's first spot Solana-based ETF anticipated to commence trading in the near future.

Felipe Gonçalves, Director at B3, reported that approximately 180,000 accounts hold crypto products in Brazil, collectively valued at nearly 5.5 billion Brazilian reais. Moreover, cryptocurrency trading volume in the country reached 6 billion Brazilian reais in the first five months of 2024, reflecting a 30% increase compared to the previous year.

BlackRock's move into the Brazilian market underscores the growing acceptance and integration of digital asset products within established financial systems.

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