ETF
Growing interest in crypto as Brazil welcomes BlackRock’s Ethereum ETF
Indications are that Brazil is embracing cryptocurrency with the introduction of BlackRock’s new Ethereum exchange-traded fund (ETF) in the Brazilian market through the B3 stock exchange.
The iShares Ethereum Trust, listed under the ticker ETHA39, offers both retail and institutional investors a chance to trade Ethereum-backed securities in Brazil.
The new fund, a depositary receipt representing shares in the Ethereum Trust, is priced at one-third of its original value and comes with a management fee of 0.25% annually.
To attract early investors, BlackRock has reduced this fee to 0.12% for the first year or until the fund’s assets reach $2.5 billion.
BlackRock’s move follows the recent launch of its iShares Bitcoin Trust in Brazil, also via depositary receipt.
Cristiano Castro, BlackRock’s director in Brazil, emphasized that the rapid growth of the Bitcoin ETF highlights a strong demand for crypto products, which the new Ether ETF aims to address.
Brazil, known for its progressive stance on crypto assets, now offers 15 different ETFs and depositary receipts related to digital currencies.
The country’s crypto trading volume surged to $6 billion in early 2024, a 30% increase from the previous year, underscoring the expanding interest in digital investments.
Felipe Gonçalves, a director at B3, noted that Brazilian investors hold nearly $1 billion in crypto products, reflecting the growing market for these digital assets.