BlackRock launches Ethereum ETF on B3 stock exchange in Brazil

BlackRock launches Ethereum ETF (ETHA39) in Brazil via BDR on B3 stock exchange.
Initial trading price set between R$40-R$50 with first-year fees halved to 0.12%.
Brazil now has 15 crypto-linked ETFs.

BlackRock has expanded its cryptocurrency product portfolio in Brazil by launching the iShares Ethereum Trust (ETHA) via a share receipt (BDR) on the B3 stock exchange.

This follows the successful introduction of BlackRock’s Bitcoin ETF (IBIT39) in the country, marking another significant step in making crypto assets more accessible to Brazilian investors.

Initial trading price to range between R$40 and R$50

The iShares Ethereum Trust, trading under the ticker ETHA39, is designed to cater to both retail and institutional investors.

The ETF’s initial trading price is expected to range between R$40 and R$50, representing approximately one-third of the value of the original asset that backs the BDR.

The management fee for the ETF is set at 0.25% per year, mirroring the fee structure in the United States. However, during the first year of trading or until the ETF reaches $2.5 billion in assets under management (AUM), the fee will be halved to 0.12%, making it even more attractive to investors.

Demand for crypto-related products in Brazil

Cristiano Castro, BlackRock’s director in Brazil, emphasized that the launch is a response to the growing demand for crypto-related products in the country. He highlighted the success of the iShares Bitcoin Trust as evidence of this demand, noting that it became the fastest-growing ETF in history over three months.

According to Castro, BlackRock’s strategy is to meet this demand by facilitating access to digital products within the capital market.

Before being launched in Brazil by BlackRock, the original iShares Ethereum Trust was launched in the United States in June 2024 and quickly became the most liquid cryptocurrency fund, with 80% of its trading volume coming from individual investors.

The Brazilian market, which has seen significant growth in crypto trading, now offers 15 ETFs or BDRs linked to digital assets. Despite the existence of multi-asset funds in Brazil, BlackRock’s reputation and established governance are expected to attract investors to ETHA39.

This launch underscores Brazil’s position as a key market for crypto investments, with nearly 180,000 investors holding crypto products valued at approximately R$5.5 billion.

As the demand for digital assets continues to rise, BlackRock’s Ethereum ETF is poised to play a crucial role in the evolving landscape of Brazil’s financial market.