iShares Ethereum Trust Makes Debut on Brazilian B3 Exchange

BlackRock has expanded its cryptocurrency offerings by listing the iShares Ethereum Trust (ETHA) on Brazil’s B3 Stock Exchange under the ticker ETHA39, with the launch set for Wednesday. The trust will be available as Brazilian depositary receipts (BDRs), which represent shares of foreign companies traded on local exchanges. Each ETHA39 unit will be priced between R$40 and R$50.

Fee Waiver to Attract Investors

In a bid to attract Brazilian investors, BlackRock is waiving the management fee for ETHA39 during its first year. The fee, typically 0.25%, will be reduced to 0.12% on assets up to US$2.5 billion. This move follows the strong performance of BlackRock’s iShares Bitcoin Trust ETF (IBIT), which launched on the same exchange earlier this year and saw substantial investor interest.

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Nicolas Gomez, BlackRock’s Head of ETFs, Index Investments, and Products for Latin America, highlighted the launch of ETHA as a response to the growing demand for cryptocurrency investments in Brazil. The addition of Ethereum to BlackRock’s offerings complements its existing Bitcoin trust, providing Brazilian investors with access to two of the largest cryptocurrencies by market capitalization.

Regulatory and Tax Considerations

While BDRs offer a means for local investors to gain exposure to foreign assets, they are subject to the same taxation rules as domestic shares. Investors should be aware that BDR transactions of less than R$20,000 per month do not benefit from tax exemptions. This regulatory detail is important for portfolio management and tax planning.

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Growing Cryptocurrency Investment in Brazil

The listing of ETHA39 reflects an increasing appetite for cryptocurrency investments in Brazil. The Brazilian Securities and Exchange Commission is also considering the addition of more crypto-related ETFs, further diversifying investment options within the country. The strong performance of BlackRock’s ETHA in the United States, with over $1 billion in cumulative net inflows, underscores the growing global interest in cryptocurrency investments.