BlackRock Expands Spot Bitcoin ETF to Brazil
BlackRock, one of the top investment asset management firms, is making rapid progress in its spot Bitcoin ETF journey. The company is now looking to launch its flagship BTC fund, IBIT, in Brazil. This move comes less than two months after BlackRock received approval from the United States Securities and Exchange Commission (SEC) to launch its spot Bitcoin ETF. BlackRock plans to collaborate with B3, the stock exchange operator in Brazil, for this expansion. If successful, this will be BlackRock’s first crypto ETF in South America.
The decision to expand into Brazil indicates that BlackRock’s foray into the spot Bitcoin ETF market has been successful so far. The Asset Under Management (AUM) of their flagship fund, IBIT, is approaching the $10 billion mark. Karina Saade, the president of BlackRock in Brazil, confirmed the company’s plans for expansion.
“Our digital asset journey has always aimed to provide high-quality access vehicles to investors. IBIT39 is a natural progression of our efforts and builds on the capabilities we have established in the digital asset market,” said Saade.
BlackRock Witnesses Significant Inflow
On February 27th, the spot Bitcoin ETF market experienced a strong inflow of $577 million. Out of this total, the BlackRock iShares Bitcoin ETF alone received an inflow of $520 million. Additionally, IBIT achieved a new personal record with $1.3 billion in trading volume, surpassing the daily trade volume of most large-cap U.S. stocks.
In Brazil, trading for the spot Bitcoin ETF is set to begin on Friday but will initially only be available to eligible investors who have more than R$1 million invested. After a few weeks, retail investors will also have access to the offering. The Bitcoin ETF will be traded under the ticker IBT39 and listed on the Brazilian Stock Exchange, B3.
Similar to the BlackRock spot Bitcoin ETF in the U.S., the Brazil ETF will track the performance of Bitcoin. It will have a management fee of 0.25%, with a one-year waiver that reduces the fee to 0.12% for the first $5 billion of assets under management (AUM). Since the asset will be issued in Brazil and backed by shares abroad, BlackRock’s product is defined as Brazilian Depositary Receipts (BDR).
BDRs are certificates representing shares issued by foreign companies but traded within Brazil.
Hot Take: BlackRock’s Expansion into Brazil Reflects Growing Demand for Bitcoin ETFs
The decision by BlackRock to expand its spot Bitcoin ETF offering to Brazil indicates the growing demand for such investment vehicles. With IBIT’s AUM approaching $10 billion and significant inflows into their existing ETFs, it is clear that investors are increasingly interested in gaining exposure to Bitcoin through regulated and accessible products.
This expansion also highlights Brazil’s potential as a market for crypto investments. By partnering with B3, BlackRock is leveraging the country’s established stock exchange infrastructure to bring their Bitcoin ETF to Brazilian investors. This move not only provides more options for local investors but also contributes to the overall growth and adoption of cryptocurrencies in South America.
As BlackRock continues to expand its spot Bitcoin ETF offerings globally, it sets a positive precedent for other asset managers and institutional investors. The success of these funds demonstrates that there is a strong market demand for regulated crypto investment products.
In conclusion, BlackRock’s expansion into Brazil with its spot Bitcoin ETF is a significant development in the crypto investment space. The company’s rapid progress and success in the U.S. market, coupled with the growing demand for Bitcoin ETFs, make this move a logical next step. By providing investors with regulated and accessible options to invest in Bitcoin, BlackRock is contributing to the mainstream adoption of cryptocurrencies.
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