On Tuesday, BlackRock debuted its own spot ether ETF, the iShares Ethereum Trust ETF (ETHA).
ETHA normally has a net expense ratio of 0.25%. However, Blackrock is waiving a portion of the fee for the first twelve months. For now, the expense ratio is 0.12%. This discount will conclude early if the fund exceeds $2.5 billion in assets under management.
As a spot ether ETF, ETHA offers investors the chance to gain exposure to Ethereum without the traditional difficulties of directly holding the cryptocurrency. This indirect exposure comes with the benefits of BlackRock’s management, along with its partnership with Coinbase.
“The launch of the iShares Ethereum Trust ETF adds to our digital assets offering and simplifies investor access to an asset that has the potential to support a different and wide range of blockchain applications,” noted Robert Mitchnick, BlackRock Global Head of Digital Assets. “This latest offering is a testament of our commitment to driving innovation for our clients.”
Advantages of Ethereum
Ethereum, one of the world’s largest cryptocurrencies, utilizes a highly versatile blockchain. It offers a variety of different program use cases. While crypto innovation continues to mount, investors can utilize ETHA as a cost-effective vehicle to navigate the digital currency space.
Spot ether ETFs are the new product on the market. Therefore, asset managers like BlackRock are eager to offer compelling funds at strong discounts. For investors curious about cryptocurrency, now may be the time to give Ethereum a shot.
BlackRock’s foray into Ethereum comes as the asset manager continues to see resounding success with its spot Bitcoin offering, the iShares Bitcoin Trust Registered (IBIT). As of July 22nd, 2024, IBIT has seen over $1.3 billion in net flows over the last month.
“The robust demand for the iShares Bitcoin Trust underscores investors’ preference to access a cryptoasset through the convenience of the iShares investment platform. The launch of the iShares Ethereum Trust ETF has enabled us to now provide investors access to the two largest cryptocurrencies by market cap,” added Jay Jacobs, U.S. Head of Thematic and Active ETFs.
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