BlackRock set to launch Brazil’s first Bitcoin ETF IBIT39 on B3 exchange

BlackRock set to launch Brazil’s first Bitcoin ETF IBIT39 on B3 exchange

By Charles Thuo - min read
  • BlackRock to launch Brazil’s first Bitcoin ETF IBIT39 on B3 exchange on March 1, 2024.
  • IBIT39 mirrors Bitcoin’s performance and offers a 0.25% management fee, reduced to 0.12% first year.
  • BlackRock aims to meet the rising demand for regulated crypto investments in Brazil.

BlackRock, a global investment management firm, is poised to make a significant stride in Brazil’s cryptocurrency market with the upcoming launch of the country’s inaugural Bitcoin exchange-traded fund (ETF), IBIT39.

Scheduled to debut on March 1, 2024, on Brazil’s primary stock exchange, B3, the move marks a pivotal moment in the accessibility of digital assets for regional investors.

BlackRock’s Bitcoin ETF in Brazil

The iShares Bitcoin Trust BDR (IBIT39) is BlackRock’s response to the increasing demand for regulated avenues to invest in cryptocurrencies. Headed by Karina Saade, BlackRock Brazil Country Manager, the ETF is designed to offer qualified and retail investors an opportunity to gain exposure to Bitcoin within a regulated framework.

With Brazil’s financial landscape witnessing a growing interest in digital assets, BlackRock’s initiative underscores the importance of providing secure and transparent investment options to meet investor demand.

IBIT39 structured for market growth

IBIT39 mirrors the price performance of Bitcoin and comes with a management fee initially set at 0.25%, with a reduction to 0.12% for the first year on the initial $5 billion in assets under management (AUM).

This fee structure aims to attract investors while ensuring sustainability and profitability for the ETF.

Additionally, IBIT39’s introduction adds momentum to Brazil’s burgeoning crypto ETF market, which saw its inception in 2021 and has since experienced substantial asset growth.

As Felipe Gonçalves, B3’s Interest and Currency Products Superintendent, notes, the market has expanded to encompass 13 ETFs with assets totalling R$2.5 billion, signalling a growing appetite for digital asset investment vehicles.

BlackRock’s entry into Brazil’s Bitcoin ETF arena reflects its commitment to providing innovative investment solutions while catering to evolving investor preferences.

Saade emphasized that while BlackRock’s recent ventures into crypto-related products do not equate to an endorsement of Bitcoin itself, they acknowledge the rising interest among investors for this asset class.

With IBIT39’s impending launch, investors in Brazil are poised to gain access to a regulated and transparent vehicle for Bitcoin investment, further fueling the country’s cryptocurrency market growth.