BlackRock plans to launch Brazil’s inaugural Bitcoin exchange-traded fund (ETF), the iShares Bitcoin Trust BDR (IBIT39), on March 1st, marking a significant expansion in the country’s cryptocurrency market. Available initially to qualified investors, with intentions to later extend to retail investors upon regulatory approval, the iShares Bitcoin Trust Brazilian Depositary Receipts (BDR) will debut on Brazil’s primary stock exchange, B3.
JUST IN 🇧🇷 – BlackRock’s spot #Bitcoin ETF will begin trading tomorrow in Brazil.
Initially “IBIT39” will only be available to qualified investors with retail access to come in the following weeks. pic.twitter.com/GL5IzWUQCx
— Swan Media (@Swan) February 29, 2024
Karina Saade, BlackRock Brazil Country Manager, highlighted the ETF’s objective of providing regulated access to Bitcoin, underscoring the strategic advancement of digital asset investments in Brazil. Saade emphasised BlackRock’s commitment to offering high-quality investment avenues and expressed confidence in the potential of technology, enabling investors to construct portfolios exclusively through ETFs.
However, Saade clarified that BlackRock’s recent ventures into the cryptocurrency realm, both in the United States and Brazil, should not be interpreted as an endorsement of crypto. Rather, it acknowledges the escalating investor interest in this asset class. The IBIT39 ETF is designed to mirror Bitcoin’s price performance and carries a management fee of 0.25%, which will be reduced to 0.12% for the initial year on the first $5 billion in assets under management (AUM).
Felipe Gonçalves, B3’s Interest and Currency Products Superintendent, noted the burgeoning crypto ETF market in Brazil, which commenced in 2021 and currently comprises 13 ETFs with assets totaling R$2.5 billion. Despite experiencing fluctuations over two years, the market saw a surge towards the end of last year, reaching daily volumes of R$30 million.