BlackRock Launches iShares Bitcoin Trust ETF in Brazil
BlackRock, the world’s largest asset manager, has announced the launch of the iShares Bitcoin Trust ETF (IBIT39) in Brazil. This index fund will track the spot price of Bitcoin (BTC) and will be traded on the Brazilian Commodities and Futures Exchange, known as B3.
Commitment to Providing Access to Digital Assets
Karina Saade, president of BlackRock in Brazil, emphasized the company’s commitment to offering high-quality access vehicles for investors in the digital asset market. She stated that the IBIT39 is a natural progression of their efforts over the years and builds on their established capabilities in the digital asset market.
Growth of the Crypto Market in Brazil
Felipe Gonçalves, Superintendent of Interest and Currency Products at B3, discussed the growth of the listed crypto market in Brazil. He noted that since its inception in 2021, the market now has 13 ETFs with total assets of R$2.5 billion (about $505 million).
- The daily trading volume reached R$30 million reais ($6.6 million) by the end of last year.
- There are currently 170,000 investors in crypto ETFs, including institutional investors and individual investors.
- Liquidity in the market is provided by non-residents investing in B3.
Fees and Broader Participation
The IBIT39 will have a management fee of 0.25%, which will be reduced to 0.12% after one year once the fund reaches its first $5 billion in assets under management (AUM). The product will be available to the general public, allowing for broader participation in the Bitcoin market.
Positive Inflows for BlackRock’s IBIT ETF
The iShares Bitcoin Trust (IBIT) ETF by BlackRock has gained significant traction in the US ETF race. Data from BitMEX research shows that on February 29, 2024, positive flows amounted to $92 million for the day.
- BlackRock and Grayscale’s Bitcoin Trust (GBTC) offset each other with $600 million in opposite directions.
- Since the ETFs began trading on January 11, 2024, there has been a net inflow of $7.5 billion.
Growing Demand for Bitcoin
The overall holdings of spot funds, which directly hold Bitcoin, reached 776,464 BTC (equivalent to $47.7 billion) on Friday morning. This represents approximately 4% of the total BTC supply currently in circulation.
The demand for Bitcoin among investors utilizing these index funds is growing, as they seek exposure to the cryptocurrency.
BTC Consolidates Above $62,000
Bitcoin continues to consolidate above the $62,000 mark and has risen by 1.3% in the past 24 hours.
Hot Take: BlackRock Expands Bitcoin ETF Offerings to Brazil
BlackRock’s launch of the iShares Bitcoin Trust ETF (IBIT39) in Brazil demonstrates their commitment to providing high-quality access vehicles for investors in the digital asset market. The growth of the crypto market in Brazil and the positive inflows for BlackRock’s IBIT ETF highlight the increasing demand for Bitcoin among investors.
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