BlackRock to launch Ethereum ETF in Brazil via BDR
BlackRock to launch Ethereum ETF in Brazil via BDR
BlackRock has announced the launch of its Ethereum ETF (ETH) in Brazil, following its debut in the U.S. in July. The ETF, which will trade on the B3 exchange under the ticker ETHA39, will be available to Brazilian investors starting this Wednesday (28). The ETF will be accessed through a Brazilian depositary receipt (BDR), allowing local investors to deal in Ethereum without buying the cryptocurrency directly.
The ETHA39 BDR will be part of the iShares Ethereum Trust (ETHA) and is expected to start trading between 40 and 50 BRL, depending on the ETF's performance in the U.S. market today. The BDR's administration fee will be 0.25%, but will be waived within the first year, bringing the fee down to 0.12% with initial assets under management (AUM) of $2.5 billion.
The move is an important move by BlackRock following the successful launch of the Bitcoin ETF BDR (IBIT39) earlier this year, according to TU Crypto News. The Bitcoin ETF debuted in the U.S. in January and was introduced to the Brazilian market just over a month later. The launch of ETHA39 now offers Brazilian investors access to the two largest cryptocurrencies by market capitalization, expanding their investment options.
Nicolás Gomes, BlackRock's Head of ETFs, Index Investments and Products for Latin America, emphasized the strong demand for the Bitcoin ETF BDR and expressed optimism about the Ethereum offering. “The launch of ETHA39 allows investors to access the two largest cryptocurrencies by market cap,” Gomez said, emphasizing the high interest in digital assets.
Cristiano Castro, Director of BlackRock Brazil, supported this view, noting that “the launch of ETHA39 expands the range of available digital assets and simplifies investors' access to an asset that has the potential to support a wide and diverse range of blockchain applications.”
As a BDR, the product is defined as a Brazilian depositary receipt, which represents shares issued by companies in other countries but traded on the Brazilian stock exchange. While BDRs are taxed in the same way as shares, they do not have the same tax benefits, such as the relief on the sale of shares worth less than BRL20,000 per month.
The arrival of ETHA39 in Brazil is a clear indication of BlackRock's desire to expand its digital asset offering and provide Brazilian investors with easier access to global cryptocurrency markets.
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