BlackRock, the world's largest asset manager, is moving to launch its spot Bitcoin ETF IBIT in Brazil.
BlackRock Plans to Launch IBIT in Brazil
BlackRock, a leading investment asset management firm, has now identified Brazil as the next target to launch its flagship BTC fund, IBIT. Following approval from the U.S. Securities and Exchange Commission (SEC) and just less than two months after launching its spot Bitcoin ETF, BlackRock is on track to expand its offering into Brazil.
BlackRock plans to achieve this success by collaborating with B3, the country's stock exchange operator. Significantly, this will be the asset manager's first crypto ETF in the South American country. This expansion is a clear indication that BlackRock's foray into the spot Bitcoin ETF market is yielding tangible results, with IBIT's asset management (AUM) approaching the $10 billion milestone.
Karina Saade, BlackRock's president in Brazil, confirmed the move. Saade said, "Our digital asset journey, underpinned by our goal of providing investors with high-quality access tools for countless years, builds on our core competencies in the digital asset market to date. IBIT39 is a natural progression of our years of efforts and an addition to the core competencies we have established in the digital asset market so far." he said.
BlackRock Makes Big Entry
On February 27, the spot Bitcoin ETF market saw a strong inflow of $577 million, with $520 million of that figure coming from the BlackRock iShares Bitcoin ETF alone. Similarly, IBIT set a new personal record with trading volume of $1.3 billion, surpassing the daily trading volume of most major US stocks.
Spot Bitcoin ETF trading in Brazil will begin on Friday but will only be available to eligible investors, i.e. those with investments of more than R$1 million. In a few weeks, the offering will also be available to retail investors, according to a note from the company. The Bitcoin ETF will be traded under the ticker symbol IBT39 and will be listed on the Brazilian Stock Exchange - B3.
Like the BlackRock spot Bitcoin ETF in the US, the Brazil ETF will track Bitcoin's performance. Additionally, asset management (AUM) will have a 0.25% management fee with an annual waiver that reduces the fee to 0.12% for the first $5 billion in assets. Because the asset will be issued in Brazil and backed by shares abroad, BlackRock's product is described as Brazilian Depositary Receipts (BDR). These BDRs are certificates that represent shares issued by companies in other countries but traded in Brazil.
