BlackRock has introduced an Ethereum Exchange Traded Fund (ETF) in Brazil, marking a significant step in expanding cryptocurrency investment options in the region. The ETF, listed under the code ETHA39, has been launched today, on August 28 on Brazil’s B3 exchange.
This product is offered as a Brazilian Depositary Receipt (BDR), a type of certificate representing shares issued by a company outside of Brazil. The expected price for launching ETHA39 is between R$ 40 and R$ 50 ($7.26 to $9.00) for a management fee of only 0.12% on the first $2.5 billion in assets managed by investment professionals in the United States alone.
Brazilian Investors Gain Ethereum Access with BlackRock’s ETHA39 Launch
Nicolas Gomez, BlackRock’s head of ETFs, index investments, and products for Latin America, highlighted that this launch allows Brazilian investors to access the two largest cryptocurrencies by market capitalization Bitcoin and Ethereum. This comes after BlackRock’s iShares Bitcoin Trust ETF (IBIT) which started trading on the Brazilian stock exchange in March this year. The introduction of ETHA39 is an addition to the steadily rising list of digital assets that investors in Brazil can access.
Specifically, the Brazilian Securities and Exchange Commission (CVM) has recently approved two ETFs linked to the Solana blockchain, demonstrating growing institutional interest in related products. BlackRock has its Ethereum ETF listed on trading in the United States and already garnered more than $1 billion in net assets, making it the first among 11 issuers to achieve this feat.
The launch of ETHA39 is expected to attract more investors in Brazil because it provides a clear and easy investment in Ethereum. Nevertheless, based on the above development, the price of Ethereum seems to have been largely stagnant and is currently trading at less than $2,500.
If Brazil continues to open up its market to cryptocurrencies, then it is likely to experience growth in the market. However, investors should exercise caution as the cryptocurrency market remains highly unpredictable and some corrections may even trigger massive liquidations.
After ETHA39 was introduced, it has become a significant step towards further development of digital money adoption in Brazil, while the dangers involved in crypto trading remain an essential factor.
