BlackRock’s Ethereum ETF Arrives in Brazil via BDR, in Partnership with B3
Trading begins Wednesday (28th) for all investors
BlackRock has brought its Ethereum ETF, the iShares Ethereum Trust (ETHA), to Brazil via a share receipt (BDR), following the same path as it did with the Bitcoin ETF (IBIT39).
Starting Wednesday (28th), the asset will be available for trading by both retail and institutional investors on B3, under the ticker ETHA39.
The BDR for BlackRock’s ETF is expected to launch with a price between R$40 and R$50, depending on market conditions, corresponding to one-third of the value of the original asset that will back the receipt.
The management fee will be the same as that charged abroad, at 0.25% per year.
During the first year of trading, or until the U.S. ETF reaches $2.5 billion in assets under management (AUM), the fee charged will be reduced by half (0.12%), according to the asset manager.
Cristiano Castro, BlackRock’s director in Brazil, stated that the fund’s launch aims to meet the demand from investors for products related to the crypto market.
According to Castro, the success of the iShares Bitcoin Trust (IBIT39) is proof of this demand.
“[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,” Castro said at the launch event of ETHA39.
The original ETF, iShares Ethereum Trust, was launched in June 2024 by BlackRock in the United States and is the most liquid fund for the cryptocurrency. According to Morningstar, the ETF is close to reaching $1 billion in net inflows.
Retail and Institutional Investors
BlackRock states that 80% of the trading in both the Bitcoin and Ethereum ETFs is done by retail investors, and that it will still take some time to see a larger volume of inflows from institutional investors.
In Brazil, cryptocurrencies total R$5.5 billion in assets across funds, with 180,000 investors, according to data from Felipe Gonçalves, Superintendent of Interest and Currency Products at B3.
Gonçalves states that the average daily trading volume is R$50 million.
BDR vs. Local ETFs
ETHA39 will be the 15th cryptocurrency ETF traded on B3. Although the United States only allowed trading of this asset this year, these funds have existed in Brazil for a few years, even with multi-asset options—exposure to different cryptocurrencies within the same ETF.
For Castro, this doesn’t necessarily reduce interest in BlackRock’s product. According to the director, the main attraction of the product is its connection with the asset manager.
“It’s like a BlackRock seal of approval. Often, the investor already knows our products, understands how our governance works, and feels more comfortable having exposure to a less well-known asset,” says Castro.
