BlackRock, a prominent asset management firm, has recently introduced an Ethereum exchange-traded fund (ETF) on the B3 stock exchange in Brazil. This move signifies BlackRock’s strategic expansion into the Brazilian cryptocurrency market, following the successful launch of its Bitcoin ETF BDR, IBIT39, just over a month after its debut in the United States.

The newly launched ETF, ETHA39, aims to provide Brazilian investors with exposure to the Ethereum market. Each unit of ETHA39 represents a fraction of the share value of the original iShares Ethereum Trust (ETHA). Market analysts anticipate that the ETF will trade between R$40 and R$50 based on its performance during the initial trading period.

One of the key highlights of this product is its management fee structure. Investors will incur a management fee of 0.25%, which will be waived for the first year, effectively reducing the fee to 0.12% for the initial $2.5 billion in assets under management (AUM).

Nicolas Gomez, the head of ETFs, index investments, and products at BlackRock for Latin America, emphasized the increasing demand for cryptocurrency-based financial products. He underscored the significance of ETHA39 in providing investors access to the two largest cryptocurrencies by market capitalization, Ethereum and Bitcoin.

Cristiano Castro, the director of BlackRock in Brazil, highlighted the accessibility and diversity that ETHA39 offers to investors in the digital asset space. This ETF, classified as a Brazilian Depositary Receipt (BDR), enables trading of shares issued by foreign companies within the Brazilian market.

The introduction of ETHA39 in Brazil comes on the heels of data from Arkham Intelligence revealing BlackRock’s substantial holdings in cryptocurrency ETFs. As of a recent report, BlackRock held a combined amount exceeding $21 billion in Bitcoin and Ethereum across its iShares Bitcoin Trust (IBIT) and iShares Ethereum Trust (ETHA), with the majority allocated to Bitcoin.

It is important to note that the information provided in this article is for informational purposes only and should not be construed as financial advice. Readers are encouraged to conduct thorough research before making any investment decisions. The views expressed herein are based on personal opinions and do not necessarily reflect the stance of The Crypto Basic.