BlackRock Launches Bitcoin Spot ETF in Brazil, ETF Market Accounts for 4% of Total Bitcoin Supply

BlackRock, the world’s largest asset manager, announced Thursday the launch of the iShares Bitcoin Trust ETF (IBIT39) in Brazil. Beginning March 1, shares of the index fund, which tracks the spot price of bitcoin (BTC), will be traded on the Brazilian Commodity and Futures Exchange, known as B3.Bitcoin Miner

BlackRock Launches IBIT39 Bitcoin ETF in Brazil

Karina Saade, President of BlackRock Brazil, emphasized the company’s commitment to providing high-quality access tools for investors in the digital asset market.

She stated:

“IBIT39 is a natural progression of our efforts over the years, building on the fundamental capabilities we have established in the digital asset markets to date.”

Felipe Gonçalves, Head of Interest and Cryptocurrency Products at B3, discussed the growth of the listed cryptocurrency market in Brazil. He noted that this market, which has been launched since 2021, currently boasts 13 ETFs with total assets of R$2.5 billion (approximately $505 million).

Despite the volatility the market experienced in its early days, local Brazilian media outlets reported that daily trading volume reached a staggering 30 million reais ($6.6 million) by the end of last year.Litecoin DOGE Miner

Investors in cryptocurrency ETFs, which include institutional investors, funds and individual investors, currently number 170,000, Gonçalves mentioned. Market liquidity is provided by non-residents throughout the investment in B3.

IBIT39 reportedly has a management fee of 0.25%, which will be reduced to 0.12% through a one-year waiver once the fund reaches its first $5 billion in assets under management (AUM). The product will be open to the public, allowing for a wider range of Bitcoin market participants.

Net Inflows of $7.5 Billion Since U.S. Bitcoin ETF Launch

BlackRock’s IBIT (iShares Bitcoin Trust) ETF has become a major player in the U.S. ETF race since the ETF began trading on Jan. 11, 2024, as a hedge against large outflows from Grayscale Bitcoin Trust (GBTC).

BitMEX’s research data shows that as of February 29, 2024, positive flows for the day amounted to $92 million. Notably, BlackRock and GBTC canceled each other out, experiencing $600 million in outflows. Since the ETFs began trading on January 11, 2024, there has been an impressive $7.5 billion in net asset inflows, the data shows.

According to BitMEX Research, the total holdings of spot funds that directly hold Bitcoin reached 776,464 BTC (equivalent to $47.7 billion) on Friday morning.

Considering that the total supply of bitcoin currently in circulation is 19.64 million, with a maximum limit of 21 million, the fact that ETFs account for 4% of the total supply of bitcoin in this context is an important milestone. It demonstrates the growing demand for investors to utilize these index funds and gain exposure to cryptocurrencies (Bitcoin).