BlackRock has launched its Ethereum exchange-traded fund (ETF) on the B3 stock exchange to expand its cryptocurrency offerings to Brazil.
According to local reports, the ETF, dubbed ETHA39, will provide investors with exposure to the Ethereum market. Each unit represents one-third of the share value of the original iShares Ethereum Trust (ETHA). Depending on its performance on the launch day, the ETF is expected to trade between R$40 and R$50.
This product will carry a management fee of 0.25%, which will be waived for the first year. This effectively reduces the fee to 0.12% on the first $2.5 billion in assets under management (AUM).
The introduction of ETHA39 follows BlackRock’s earlier launch of IBIT39, a Bitcoin ETF BDR, which was introduced in Brazil just over a month after its U.S. debut.
Experts React
Nicolas Gomez, head of ETFs, index investments, and products at BlackRock for Latin America, emphasized the robust demand for cryptocurrency-based financial products. He also highlighted that ETHA39 now offers investors access to the two largest cryptocurrencies by market capitalization.
Cristiano Castro, director of BlackRock in Brazil, noted that ETHA39 simplifies access to digital assets and offers a diverse range of blockchain applications. This ETF, defined as a Brazilian Depositary Receipt (BDR), represents shares issued by companies abroad but traded in Brazil.
Holdings Comparison
Notably, the launch of ETHA39 in Brazil comes two weeks after data from Arkham Intelligence revealed BlackRock’s substantial holdings in cryptocurrency ETFs. As of August 16, BlackRock held a combined $21.217 billion in BTC and ETH across its iShares Bitcoin Trust (IBIT) and iShares Ethereum Trust (ETHA).
Of this total, the Bitcoin ETF accounted for over $20 billion, while the Ethereum ETF managed nearly $900 million. These holdings surpass those of Grayscale, which has introduced several ETF products, including the Bitcoin Mini Trust and Ethereum Mini Trust.
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Source: https://thecryptobasic.com/2024/08/29/blackrock-new-ethereum-etf-hits-b3-stock-exchange-in-brazil/?utm_source=rss&utm_medium=rss&utm_campaign=blackrock-new-ethereum-etf-hits-b3-stock-exchange-in-brazil