Key takeaways:
- BlackRock is growing its selection of crypto products abroad. The business debuted its Ethereum ETF on Brazil’s stock exchange B3 by use of a depositary receipt.
- Management fees will be determined annually at 0.25% to match US rates.
BlackRock is growing its selection of crypto products abroad. The business debuted its Ethereum exchange-traded fund (ETF) on August 28 on Brazil’s stock exchange B3 by use of a depositary receipt.
The iShares Ethereum Trust (ETHA), which is traded in the nation under the ticker ETHA39, is accessible to both individual and institutional investors, according to the report from local sources.
Securities denoting shares in an overseas fund or corporation are represented by depositary receipts. It usually has the original asset backing and is traded in the native currency. Shares of BlackRock’s Ether ETF will be made available to the local market at a price equal to one-third of their initial value.
Meanwhile, management fees will be determined annually at 0.25% to match US rates. However, these fees will be cut in half to 0.12% for the first year of trading or until the ETF manages $2.5 billion in assets.
Shortly after introducing its iShares Bitcoin Trust in the nation through a depositary receipt, the asset management debuted its Ether ETF. Cristiano Castro, the director of BlackRock in Brazil, stated in a local interview that the fund would satisfy the nation’s rising demand for crypto assets:
“is the fastest-growing ETF in history over a three-month period. This shows that there was pent-up demand for the product. BlackRock’s strategy is to meet this demand and make it easier for investors to access these digital products within the capital market.”
One of the first markets to permit the trade of products related to cryptocurrencies on its stock exchange was Brazil. Investors in the nation will have access to 15 ETFs or depositary receipts that provide exposure to digital assets, according to BlackRock’s new fund. The world’s first spot Solana-based ETF was approved by local regulators in July, and it is anticipated to launch in the upcoming months.
Felipe Gonçalves, director of B3, claims that 180,000 investors own crypto goods valued at approximately 5.5 billion Brazilian reais, or almost $1 billion. In the first five months of 2024, the country’s crypto trading volume hit $6 billion, a 30% rise from the year before.
