BlackRock, the world’s largest asset manager, has introduced its Ethereum ETF on Brazil’s B3 stock exchange, offering Brazilian investors a new avenue to invest in Ethereum, the second-largest cryptocurrency by market capitalization. The ETF, trading under the ticker ETHA39, marks BlackRock’s continued expansion into the digital asset space in Brazil.
This launch follows the successful introduction of BlackRock’s Bitcoin ETF in Brazil earlier this year, which trades under the ticker IBIT39. The strong demand for the Bitcoin ETF prompted BlackRock to broaden its offerings to include Ethereum, catering to the increasing interest in cryptocurrencies among Brazilian investors.
The ETHA39 is structured as a Brazilian Depositary Receipt (BDR), meaning it represents shares of BlackRock’s Ethereum Trust in the U.S. but is tradable on the local Brazilian market. It is important to note that while BDRs are subject to the same tax treatment as Brazilian shares, they do not qualify for tax exemptions on smaller transactions.
The Ethereum ETF is set to begin trading on Wednesday, August 28, 2024, with an initial price ranging between R$40 (approximately $7.26) and R$50 (approximately $9), depending on its performance in the U.S. market. In a bid to attract early investors, BlackRock has announced a reduced management fee for the first year, cutting it from 0.25% to 0.12% for assets up to $2.5 billion.
Nicolas Gomez, who leads ETFs and index investments for Latin America at BlackRock, highlighted the robust demand for their Bitcoin ETF as a key motivator for launching the Ethereum ETF. This move underscores the growing interest in digital assets within Brazil and BlackRock’s commitment to meeting that demand with innovative financial products.
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