BlackRock has expanded its cryptocurrency product offerings in Brazil by launching an Ethereum exchange-traded fund (ETF). The iShares Ethereum Trust (ETHA), listed on Brazil's B3 stock exchange under the ticker ETHA39, allows both retail and institutional investors to trade Ethereum-based securities through a depositary receipt. This depositary receipt represents shares of the Ethereum ETF and is traded in the local currency.
The shares of the Ethereum ETF are priced at one-third of their original value, and the management fees are set at 0.25% per year. However, for the first year or until the ETF reaches $2.5 billion in assets, these fees will be reduced to 0.12%.
This launch follows BlackRock's earlier introduction of its iShares Bitcoin Trust in Brazil, which also saw significant demand. According to BlackRock’s director in Brazil, Cristiano Castro, there is a growing demand for crypto assets in the country, and BlackRock aims to provide easier access to these digital products through the capital market.
Brazil is becoming a significant market for crypto products, with around 180,000 investors holding crypto assets worth about 5.5 billion Brazilian reais (~$1 billion). The crypto trading volume in Brazil reached $6 billion in the first five months of 2024, showing a 30% increase from the previous year. Additionally, Brazil was among the first to allow crypto-tied products on its stock exchange and is set to launch the world’s first spot Solana-based ETF soon.
