CashNews.co
BlackRock, the world’s largest asset manager, has unveiled its new ethereum exchange-traded fund (ETF) on B3, the top exchange in Latin America, in a bid to increase exposure to the world’s second-largest cryptocurrency.
The new ethereum ETF began trading on Wednesday under the ticker name ETHA39. Administration fees for the new fund will echo those charged in the U.S., running at 0.25% every year. However, during the fund’s initial year – or until the ETF amasses $2.5 billion worth of assets under management – BlackRock is discounting this fee to just 0.12%.
In the U.S., BlackRock has emerged as the undisputed leader in the crypto ETF space, with its iShares Ethereum Trust already poised to hit $1 billion worth of inflows, according to Morningstar data.
Its highly popular iShares Bitcoin Trust ETF [IBIT] has attracted unprecedented attention from retail and institutional investors, and remains one of the most heavily traded ETFs on the market.
“[iShares Bitcoin Trust ETF] is the fastest-growing ETF in history over a three-month period,” BlackRock’s director in Brazil, Cristiano Castro, told Brazilian media.
“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 markets in Latin America, Brazil represents a major financial opportunity for expanding crypto products. Approximately 180,000 Brazilian traders are investing in crypto products, but even for those who have yet to embrace the volatile cryptocurrency, BlackRock’s name serves to build confidence, Castro pointed out.
“It’s like a BlackRock endorsement,” Castro said. “Investors often already know our products, how our governance works and feel more comfortable having this exposure to a lesser-known asset.”