BlackRock launches Ethereum ETF in Brazil

BlackRock, the world's largest asset manager, has rolled out its new Ethereum exchange-traded fund (ETF) on B3, one of the leading exchanges in Latin America, to cater to growing investor interest in cryptocurrency in a region known for high adoption rates.

The new Ethereum ETF started trading on Wednesday under the ticker ETHA39 and was introduced via a Brazilian depositary receipt. Management fees for this fund will mirror those in the US, set at 0.25 per cent annually. However, during the fund's initial year—or until ETF reaches $2.5 billion in assets under management—BlackRock is offering a reduced fee of just 0.12 per cent.

In the United States, BlackRock has solidified its position as a prominent player in the crypto ETF arena, with its iShares Ethereum Trust on track to garner $1 billion in inflows, according to Morningstar data.

Its widely acclaimed iShares Bitcoin Trust ETF [IBIT] has also garnered significant attention from both retail and institutional investors, remaining one of the most actively traded ETFs on the market.

"[iShares Bitcoin Trust ETF] is the fastest-growing ETF in history over a three-month period," said BlackRock's director in Brazil, Cristiano Castro, at the launch event.

"This shows that there was pent-up demand for the product," Castro added. "BlackRock's strategy is to meet this demand and make it easier for investors to access these digital products within the capital market."

As one of the largest financial markets in Latin America, Brazil offers a substantial opportunity for the expansion of crypto products. An increasing number of Brazilian traders are engaging with crypto, but even those who have not yet ventured into the cryptocurrency space see BlackRock's involvement as a vote of confidence, Castro stated.

"It's like a BlackRock endorsement," Castro told local media. "Investors often already know our products, how our governance works and feel more comfortable having this exposure to a lesser-known asset."