BlackRock Introduces iShares Bitcoin Trust ETF in Brazil

BlackRock, the world’s largest asset manager, is making waves in the cryptocurrency market with the introduction of the iShares Bitcoin Trust ETF in Brazil. This move marks a significant step for traditional investors looking to dive into the world of digital assets.

The ETF, which mirrors the one launched in the United States earlier this year, will now be available to Brazilian investors 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. It officially became available for trading on April 1st and is designed to track the performance of Bitcoin, offering accessibility to both qualified and retail investors.

The ETF comes with an administrative fee of 0.25%, with a promotional discount of 0.12% for the first $5 billion in assets under management. Structured as Brazilian Depositary Receipts (BDR), this ETF allows investors to trade shares issued by companies outside of Brazil on the Brazilian market.

Despite being subject to similar taxation as equities, BDRs do not benefit from tax exemptions available for equity sales below a certain threshold on the stock exchange. This launch comes at a time when Bitcoin has seen significant growth, with a 43% increase in February alone, the highest in four years.

Karina Saade, BlackRock’s country head in Brazil, expressed the firm’s commitment to providing top-quality digital asset options for investors. The iShares Bitcoin Trust ETF (IBT39) is seen as a natural progression of BlackRock’s involvement in the digital asset market over the years.

Felipe Gonçalves, Head of Products for Interest Rates and Currencies at B3, highlighted the increasing interest in the crypto market from investors globally and the demand for such investment options in the Brazilian capital market. B3 aims to meet this demand while ensuring the security of operations on the exchange.

This strategic move by BlackRock and B3 signifies a significant step towards integrating digital assets into mainstream investment portfolios in Brazil. It also reflects a growing trend of traditional financial institutions embracing cryptocurrencies as part of their investment offerings.

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