BlackRock’s ETHA Debuts on Nasdaq

Rhea-AI Summary

BlackRock's iShares Ethereum Trust ETF (ETHA) has launched on Nasdaq, offering investors exposure to the price of ether, Ethereum's native token. The ETF features a 0.25% sponsor fee, with a one-year waiver reducing it to 0.12% on the first $2.5B AUM. This launch follows the successful debut of BlackRock's iShares Bitcoin Trust (IBIT) in January 2024.

Jay Jacobs, U.S. Head of Thematic and Active ETFs at BlackRock, highlighted the strong demand for crypto-asset access through the iShares platform. Robert Mitchnick, Global Head of Digital Assets, emphasized ETHA's potential to support various blockchain applications. The ETF leverages BlackRock's institutional-grade technology and risk management expertise, demonstrating the firm's commitment to innovation in digital assets.

Positive

• Launch of new Ethereum ETF (ETHA) on Nasdaq, expanding BlackRock's crypto offerings
• Competitive fee structure: 0.25% sponsor fee with 0.12% waiver on first $2.5B AUM
• Leverages BlackRock's institutional-grade technology and risk management expertise
• Follows successful launch of Bitcoin Trust (IBIT), indicating growing crypto product suite

Negative

• None.

Insights

Financial Analyst

The debut of BlackRock's iShares Ethereum Trust ETF (ETHA) on Nasdaq is noteworthy. This ETF allows investors to gain exposure to Ethereum without directly purchasing the asset. With a sponsor fee of 0.25%, reduced to 0.12% for the first year on the initial $2.5B AUM, it is competitive in fee structure, attracting cost-sensitive investors.

Short-Term Implications: The immediate impact could be an increase in trading volumes and investor interest in both Ethereum and BlackRock ETFs. Given the growing popularity of crypto assets, ETHA's launch aligns with current investment trends, potentially driving up BlackRock's AUM.

Long-Term Implications: The success of ETHA could pave the way for more blockchain-based ETFs, enhancing BlackRock's product offerings and market position. However, it also exposes investors to the volatility inherent in crypto markets. Investors should weigh the potential for high returns against the risks of significant price fluctuations in Ethereum.

Tech Expert

The introduction of ETHA showcases BlackRock's strategic move into the digital assets space, reflecting the increasing institutional interest in blockchain technology. Ethereum, known for its versatility and smart contract functionality, stands out in the crypto world and an ETF tied to its value could attract a wide range of investors.

Technological Perspective: Ethereum's blockchain supports various applications beyond currency, from decentralized finance (DeFi) to non-fungible tokens (NFTs). BlackRock’s ETF leverages this technology by providing a secure, regulated way for investors to participate in the blockchain ecosystem without direct exposure to the underlying asset.

However, it's important to recognize the technological risks. Ethereum is undergoing significant upgrades (e.g., transition to Ethereum 2.0). While these upgrades aim to improve scalability and security, they pose potential risks during the transition period. Investors should be aware of these dynamics when considering ETHA.

Market Research Analyst

BlackRock's launch of the iShares Ethereum Trust ETF (ETHA) is a significant development in the cryptocurrency market. It highlights the growing integration of digital assets into mainstream financial products. By offering a product that provides exposure to Ethereum, BlackRock is capitalizing on the rising demand for crypto investments within traditional finance structures.

Market Trends: The introduction of ETHA aligns with recent trends where institutional investors are increasingly adopting cryptocurrency assets. This move by BlackRock could normalize crypto investments further, encouraging more conservative investors to consider digital assets within their portfolios.

Investor Sentiment: Given BlackRock’s reputation and robust risk management, ETHA is likely to gain substantial traction. Investors may perceive this as an endorsement of Ethereum’s long-term viability and growth potential. However, the ETF's performance will be closely tied to Ethereum's market dynamics, which can be unpredictable.

NEW YORK--(BUSINESS WIRE)-- BlackRock’s iShares Ethereum Trust ETF (ETHA), begins trading today on Nasdaq. ETHA seeks to track the price of Ethereum’s native token, ether, and carries a 0.25% sponsor fee with a one-year waiver reducing the fee to 0.12% on the first $2.5B assets under management (AUM)¹.

“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,” said Jay Jacobs, U.S. Head of Thematic and Active ETFs.

The iShares Ethereum Trust ETF is underpinned by the same institutional grade technology and risk management expertise used for iShares’ 1,400+ ETFs globally.

“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,” said Robert Mitchnick, Global Head of Digital Assets at BlackRock. “This latest offering is a testament of our commitment to driving innovation for our clients.”

ETHA follows the iShares Bitcoin Trust (IBIT), which was launched in January 2024. BlackRock’s digital assets product suite demonstrates the firm’s ongoing dedication to giving clients access to new and evolving corners of the market.

To learn more about the iShares Ethereum Trust ETF, visit iShares.com/ETHA

About BlackRock 
BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate | Twitter: @blackrock | LinkedIn: www.linkedin.com/company/blackrock

About iShares 
iShares unlocks opportunity across markets to meet the evolving needs of investors. With more than twenty years of experience, a global line-up of 1400+ exchange traded funds (ETFs) and $3.86 trillion in assets under management as of June 30, 2024, iShares continues to drive progress for the financial industry. iShares funds are powered by the expert portfolio and risk management of BlackRock.

________________________ 1 BlackRock will waive a portion of the Sponsor’s Fee for the first 12 months commencing on July 23, 2024, so that the fee will be 0.12% of the net asset value of the Trust for the first $2.5 billion of the Trust’s assets. If the fund exceeds $2.5 billion of the Trust’s assets prior to the end of the 12-month period, the Sponsor’s Fee charged on assets over $2.5 billion will be 0.25%. All investors will incur the same Sponsor’s Fee which is the weighted average of those fee rates. After the 12-month waiver period is over, the Sponsor’s Fee will be 0.25%.

Important Information

This information must be accompanied or preceded by a current iShares Ethereum Trust ETF prospectus and iShares Bitcoin Trust Prospectus. Please read the prospectuses carefully before investing.

The iShares Trusts are not investment companies registered under the Investment Company Act of 1940, and therefore are not subject to the same regulatory requirements as mutual funds or ETFs registered under the Investment Company Act of 1940. Investments in these products are speculative and involve a high degree of risk.

Investing involves a high degree of risk, including possible loss of principal. An investment in the Trust is not suitable for all investors, may be deemed speculative and is not intended as a complete investment program. An investment in Shares should be considered only by persons who can bear the risk of total loss associated with an investment in the Trust.

Investing in digital assets involves significant risks due to their extreme price volatility and the potential for loss, theft, or compromise of private keys. The value of the shares is closely tied to acceptance, industry developments, and governance changes, making them susceptible to market sentiment. Digital assets represent a new and rapidly evolving industry, and the value of the Shares depends on their acceptance. Changes in the governance of a digital asset network may not receive sufficient support from users and miners, which may negatively affect that digital asset network’s ability to grow and respond to challenges Investing in the Trust comes with risks that could impact the Trust's share value, including large-scale sales by major investors, security threats like breaches and hacking, negative sentiment among speculators, and competition from central bank digital currencies and financial initiatives using blockchain technology. A disruption of the internet or a digital asset network would affect the ability to transfer digital assets and, consequently, would impact their value. There can be no assurance that security procedures designed to protect the Trust’s assets will actually work as designed or prove to be successful in safeguarding the Trust’s assets against all possible sources of theft, loss or damage.

The Trust(s) may incur certain extraordinary, non-recurring expenses that are not assumed by the Sponsor.

The iShares Ethereum Trust ETF (the “Trust”) is not sponsored, endorsed, issued, sold or promoted by Stiftung Ethereum (the "Ethereum Foundation"), nor does the Ethereum Foundation make any representation regarding the advisability of investing in the Trust. BlackRock is not affiliated with the Ethereum Foundation. Ethereum Marks are owned by the Ethereum Foundation, used under license.

Shares of the Trust are not deposits or other obligations of or guaranteed by BlackRock, Inc., and its affiliates, and are not insured by the Federal Deposit Insurance Corporation or any other governmental agency. The sponsor of the trust is iShares Delaware Trust Sponsor LLC (the “Sponsor”). BlackRock Investments, LLC ("BRIL"), assists in the promotion of the Trust. The Sponsor and BRIL are affiliates of BlackRock, Inc. The bitcoin and ether Custodian is Coinbase Custody Trust Company, LLC, which is not affiliated with BlackRock, Inc. The Sponsor is not responsible for losses incurred due to loss, theft, destruction, or compromise of the trust's bitcoin or ether.

©2024 BlackRock, Inc. or its affiliates. All rights reserved. iSHARES and BLACKROCK are trademarks of BlackRock, Inc., or its affiliates. All other trademarks are the property of their respective owners.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240722613376/en/

Press:

GroupCorpCommsAMRS@blackrock.com

Source: BlackRock

FAQ

What is the ticker symbol for BlackRock's new Ethereum ETF?

The ticker symbol for BlackRock's new Ethereum ETF is ETHA.

What is the fee structure for BlackRock's ETHA ETF?

ETHA has a 0.25% sponsor fee with a one-year waiver reducing the fee to 0.12% on the first $2.5 billion in assets under management.

When did BlackRock (BLK) launch its iShares Bitcoin Trust ETF?

BlackRock launched its iShares Bitcoin Trust ETF (IBIT) in January 2024.

What does BlackRock's ETHA ETF track?

BlackRock's ETHA ETF seeks to track the price of Ethereum's native token, ether.