BlackRock Brazil Launches Depository Receipts Fund Mirroring US BTC ETF
BlackRock's iShares spot Bitcoin (BTC) exchange-traded fund is available in Brazil as it launches a new BTC BDR (Brazilian Depositary Receipts) ETF. The world's largest asset manager will begin trading on February 29 on March 1.
BlackRock is partnering with Brazilian financial market infrastructure provider B3 to offer the new product, BlackRock Brazil President Carina Sade said at the company's headquarters in Sao Paulo. Saade said:
“The launch of the iShares Bitcoin Trust ETF BDR, IBIT39 enhances the creativity of ETFs and can be included in the security – ETF BDR – for investors. […] to their portfolios”.
Foreign ETFs (BDRs) are securities issued in Brazil and backed by ETF shares issued abroad. The Brazilian ETF is the same BTC ETF that BlackRock launched in the United States in January. US ETFs reflect performance and charge a management fee of 0.25%, offset by a one-year exemption on the first $5 billion of assets under management (AUM). BDRs are fully taxable.
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The Brazilian fund is available to investors who invest at least 1 million reais ($201,000) in the market. BlackRock Brazil is still awaiting retail sales approval.
There are 13 ETFs with crypto exposure listed on B3, which started listing in 2021. They have a combined value of 2.5 billion riyals ($503 million). Brazilian crypto ETFs have seen 30 million reais ($5 million) in trading volume so far this year.
The BlackRock Spot BTC ETF was one of the 10 ETFs approved by the United States Securities and Exchange Commission on January 10. The fund reached $2 billion in AUM in two weeks and has the biggest first month in history, tied with the Fidelity Spot BTC Fund. ETFs The BlackRock ETF currently has more than $8 billion in AUM.
According to various media reports, BlackRock is considering launching a Spot Ether (ETH) ETF in Brazil if it receives SEC approval to launch one in the United States.
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