BlackRock to Launch Bitcoin ETF in Brazil

BlackRock, the world’s largest asset manager, is set to introduce the iShares Bitcoin Trust ETF to Brazilian investors in a groundbreaking move that brings cryptocurrency further into the traditional financial system. The ETF, which mirrors the one launched in the United States in January, will be made available in Brazil through a partnership with B3, the country’s main stock exchange operator.

Trading under the ticker IBT39 on the B3, this ETF is BlackRock’s first crypto-based fund in Brazil and is available for trading starting from April 1st. It is designed to track the performance of Bitcoin and will be accessible to both qualified and retail investors, the company announced in a statement to Portal do Bitcoin.

The ETF comes with an administrative fee of 0.25%, with a promotional one-year discount to 0.12% over the first $5 billion in assets under management (AUM). BlackRock’s ETF in Brazil is structured as a Brazilian Depositary Receipts (BDR), which are certificates representing shares issued by companies outside of Brazil but traded on the Brazilian market.

Despite being subject to similar taxation as equities, BDRs do not enjoy any tax exemption, such as the one available for equity sales below R$ 20,000 per month on the stock exchange. This launch comes at a time when Bitcoin has registered a significant monthly gain, increasing 43% in February, the highest in four years.

Karina Saade, BlackRock’s country head in Brazil, emphasized the firm’s commitment to providing high-quality digital asset vehicles to investors. The iShares Bitcoin Trust ETF (IBT39) represents a natural progression of BlackRock’s many years of effort in the digital asset market and builds upon the fundamental capabilities established thus far.

Felipe Gonçalves, Head of Products for Interest Rates and Currencies at B3, highlighted the growing interest in the crypto market from investors worldwide and the demand for such options in the Brazilian capital market. B3 is dedicated to offering products that meet this demand while ensuring the security of operating on the exchange, Gonçalves concluded.

This strategic move by BlackRock and B3 signifies a notable step towards integrating digital assets into mainstream investment portfolios in Brazil and represents a growing trend of traditional financial institutions embracing cryptocurrencies.

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