BlackRock to Launch Bitcoin ETF in Brazil

BlackRock introduces the iShares Bitcoin Trust ETF in Brazil, marking a significant foray into cryptocurrency for traditional investors.

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

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

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

Although subject to similar taxation as shares, BDRs do not enjoy any tax exemption such as that available for sales of shares below R$20,000 per month on the stock exchange. This launch comes as Bitcoin posted a significant monthly gain, rising 43% in February, the highest in four years.

Carina Saade, head of BlackRock in Brazil, emphasized the firm’s commitment to providing high-quality digital asset tools to investors. The iShares Bitcoin Trust ETF (IBT39) represents a natural evolution of BlackRock’s multi-year efforts in the digital asset market and builds on the core capabilities established so far.

Felipe Gonçalves, Head of Products for Interest Rates and Currencies at B3, highlighted the growing interest in the crypto market by investors around the world 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 the exchange’s operations, Gonsalves concluded.

This strategic move by BlackRock and B3 marks a remarkable step towards the integration of digital assets into mainstream investment portfolios in Brazil and represents a growing trend of traditional financial institutions adopting cryptocurrencies.

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