BlackRock is expanding its crypto product offerings overseas. On Aug. 28, the company listed its Ethereum exchange-traded fund (ETF) through a depositary receipt on Brazil’s stock exchange B3.
According to local reports, retail and institutional investors can trade the iShares Ethereum Trust (ETHA) under the ticker ETHA39 in the country.
A depositary receipt is a security representing shares in a foreign company or fund. It is typically traded in the local currency and backed by the original asset. As BlackRock introduces its Ether (ETH) ETF to the local market, the shares will be offered at a price equivalent to one-third of their original value.
Meanwhile, management fees will be set at 0.25% per year, in line with those charged in the United States. However, during the first year of trading — or until the ETF reaches $2.5 billion in assets under management — these fees will be halved to 0.12%.
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The asset manager introduced its Ether ETF just a few months after launching its iShares Bitcoin Trust in the country — also through a depositary receipt. BlackRock's director in Brazil, Cristiano Castro, said in a local interview that the fund will meet the country’s growing demand for crypto assets:
“[IBIT] 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.”
Brazil was one of the first markets to allow trading of crypto-tied products on its stock exchange. With BlackRock's new fund, investors in the country will have 15 ETFs or depositary receipts offering exposure to digital assets. In July, local regulators approved the world’s first spot Solana-based ETF, which is expected to go live in the coming months.
Breakdown of trading activity by asset in Brazil. Source: Kaiko Research
According to B3’s director Felipe Gonçalves, 180,000 investors hold crypto products worth nearly 5.5 billion Brazilian reais (~$1 billion). Crypto trading volume in the country reached $6 billion in the first five months of 2024, marking a 30% increase from the previous year.
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