BlackRock Extends Ethereum ETF to Brazil, Citing Rising Demand

Asset management giant BlackRock has extended its Ethereum ETF to Brazil. As of August 28, Brazilian investors can now trade the iShares Ethereum Trust (ETHA) via a Brazilian Depositary Receipt (BDR) on the B3 stock exchange under the ticker ETHA39, local media publication InfoMoney reported.

Ethereum ETF in Brazil

This move followed BlackRock’s earlier success with its Bitcoin ETF in the region. The introduction of ETHA39 reportedly marks a significant milestone for Brazilian investors seeking exposure to Ethereum, the second-largest cryptocurrency by market capitalization.

The ETF, which originally launched in the United States in June 2024, is now available in Brazil at a price of approximately one-third of the original asset’s value, thanks to the BDR structure. This makes it more accessible to a broader range of investors.

Additionally, management fees are competitively set at 0.25% per year, with a promotional rate of 0.12% during the first year or until the fund reaches $2.5 billion in assets under management. Brazil has been a pioneer in offering crypto-tied products on its stock exchange, with ETHA39 being the 15th cryptocurrency ETF or BDR available on B3.

Despite the United States only recently authorizing such trading, Brazil’s regulatory environment has allowed for the earlier introduction of multi-asset funds, providing exposure to various cryptocurrencies within a single ETF.

Multi-asset Funds

According to Felipe Gonçalves, the superintendent of Interest and Currency Products at B3, cryptocurrencies in Brazil now total R$5.5 billion in equity across funds, with an average daily trading volume of R$50 million. This robust market underlines the significance of BlackRock’s move to offer its Ethereum ETF in the country.

As the demand for digital assets continues to rise, BlackRock’s latest ETF offering aims to position the company as a key player in Brazil’s evolving cryptocurrency market. Whether through retail or institutional investors, the introduction of ETHA39 is set to further integrate digital assets into Brazil’s financial landscape.

Spot Ethereum exchange-traded funds debuted in the US exchanges last month, generating $1.08 billion in cumulative trading volume on their first day. However, these new products faced a mixed reception, registering a net inflow of $106.6 million. This figure was contrasted by substantial outflows from Grayscale's converted Ethereum Trust, Finance Magnates reported.

Interestingly, BlackRock's iShares Ethereum Trust and Bitwise's Ethereum ETF significantly grew among the new offerings, attracting $266.5 million and $204 million in net inflows, respectively.