BlackRock, the largest in the world asset manager, announced on Thursday the launch of the iShares bitcoin Trust ETF (IBIT39) in Brazil. Starting today, Friday, March 1, the shares of this index fund, which tracks the spot price of bitcoin (btc), will be traded on the Brazilian Futures and Commodities Exchange, known as B3.
BlackRock launches IBIT39 bitcoin ETF in Brazil
Karina Saade, president of BlackRock in Brazil, highlighted the company's commitment to providing high-quality access vehicles to investors in the digital asset market. She stated:
IBIT39 is a natural progression of our efforts over many years and builds on the fundamental capabilities we have established so far in the digital asset market.
Felipe Gonçalves, Superintendent of Interest and Monetary Products at B3, analyzed the growth of the listed crypto market in Brazil. He noted that the market, which started in 2021, now has 13 ETFs with total assets of R$2.5 billion, or about $505 million.
While the market experienced fluctuations In its first years, it reached an eye-catching daily trading volume of R$ 30 million reais (6.6 million dollars) at the end of last year, according to local media. bitcoin-da-blackrock-chega-ao-brasil-com-bdr-na-b3/” target=”_blank” rel=”nofollow”>reports in Brazil.
Gonçalves mentioned that investors in crypto ETFs include institutional investors, such as funds, and individual investors, with a current number of 170,000. Liquidity in the market is provided by non-residents who invest in B3 as a whole.
IBIT39 will reportedly have a management fee of 0.25%, with a one-year waiver that reduces the fee to 0.12% once the fund reaches its first $5 billion in assets under management (AUM). The product will be available to the general public, allowing for broader participation in the bitcoin market.
Net inflow of $7.5 billion into bitcoin ETFs since US launch
BlackRock's IBIT ETF (iShares bitcoin Trust) has emerged as a notable player in the US ETF race, offsetting a significant exit from Grayscale's bitcoin Trust (GBTC).
BitMEX Research data shows that on February 29, 2024, positive flows amounted to $92 million on the day. Notably, BlackRock and GBTC offset each other, experiencing $600 million in opposite directions. The data shows that since the ETFs began trading on January 11, 2024, there has been an impressive net inflow of $7.5 billion.
Total holdings of spot funds, which directly own bitcoin, stood at 776,464 btc (equivalent to $47.7 billion) as of Friday morning, according to BitMEX Research. It is essential to consider that the total supply of btc Currently in circulation is 19.64 million, with a maximum limit of 21 million.
In this context, the fact that ETFs have secured 4% of the total btc supply is an important milestone. It demonstrates the growing demand for bitcoin among investors who use these index funds to gain exposure to the cryptocurrency.
btc continues to consolidate above the $62,000 mark, rising 1.3% in the last 24 hours.
Featured image from Shutterstock, chart from TradingView.com
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