BlackRock's Bitcoin ETF Launches in Brazil, Eyes Future Ethereum ETF Expansion
Summary:
BlackRock's iShares Bitcoin (BTC) exchange-traded fund (ETF) is set to launch in Brazil through a new BTC Brazilian Depositary Receipt (BDR) ETF. Starting from March 1, the new product is a result of BlackRock's partnership with Brazilian financial market infrastructure provider B3. The ETF is a mirror of the BTC ETF that BlackRock introduced in the US in January and is aimed to be available to investors, who have already secured at least 1 million reals ($201,000) investment in the market. BlackRock is also considering the launch of a spot Ethereum (ETH) ETF in Brazil, conditional upon receiving approval from the SEC in the US.
The iShares Bitcoin (BTC) exchange-traded fund (ETF), a product of BlackRock, is set to be available in Brazil through the introduction of a new BTC Brazilian Depositary Receipt (BDR) ETF. This trading is expected to commence on the first day of March, following BlackRock's announcement on February 29. BlackRock, being the largest asset manager worldwide, will align with B3, a Brazilian financial market infrastructure provider, to introduce this new product. The statement was made by Karina Saade, BlackRock Brazil's president, at the company's São Paulo headquarters.
She articulated that the introduction and launch of the iShares Bitcoin Trust ETF BDR, tagged as IBIT39, is a forward step in ETF innovation that offers investors a gateway to Bitcoin through a safe option - the ETF BDR - that can be seamlessly integrated into their portfolios. She clarified that BDRs of international ETFs are securities that are released in Brazil and backed by shares of ETFs issued overseas.
Effectively, the Brazilian ETF is a mirror of the BTC ETF that BlackRock introduced in the US in January. It will replicate the performance of the US ETF and will have a 0.25% management fee, which will be counteracted by a one-year exemption on the first $5 billion of assets under management (AUM). However, the BDRs are subject to full taxation.
The Brazilian fund, having already secured at least 1 million reals ($201,000) investment in the market, awaits retail sales approval. As of 2021, there were 13 Ethereum (ETH) ETFs listed on B3, amassing a combined value of 2.5 billion reals ($503 million). Since then, trading of Brazilian crypto ETFs has generated 30 million reals ($5 million).
On January 10, BlackRock's spot BTC ETF was among the ten that received approval from the US Securities and Exchange Commission. In two weeks, the fund achieved a $2 billion AUM landmark and had a record tie with Fidelity's spot BTC fund for the most significant debut month in the ETF history, currently boasting an AUM exceeding $8 billion.
As widely reported in the media, BlackRock has indicated a possibility of launching a spot Ethereum (ETH) ETF in Brazil, subject to SEC's approval for its launch in the US.
Published At
2/29/2024 11:15:25 PM
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