BlackRock Launches Brazil’s First Bitcoin ETF on B3 Stock Exchange

BlackRock, the world’s largest asset manager, is set to debut Brazil’s first Bitcoin exchange-traded fund (ETF), iShares Bitcoin Trust BDR (IBIT39), on the B3 stock exchange. This move marks a significant milestone in providing Brazilian investors with a regulated avenue to gain exposure to Bitcoin.

Karina Saade, president of BlackRock in Brazil, expressed enthusiasm for the launch, stating that IBIT39 represents a crucial step in offering top-quality digital asset investment options. The ETF launch comes at a time when interest in crypto investments is surging in Brazil, with the local market witnessing substantial growth.

According to Felipe Gonçalves from B3, Brazil’s crypto market has shown remarkable expansion, with daily transactions reaching R$30 million by the end of last year. IBIT39 is designed to be accessible to both institutional and retail investors, with a management fee initially set at 0.25%, decreasing to 0.12% once the fund surpasses $5 billion in assets. While currently available to professional investors, IBIT39 will soon be accessible to retail investors as well.

The ETF is structured as Brazilian Depositary Receipts (BDRs), enabling Brazilian investors to buy and sell Bitcoin indirectly. However, unlike regular stocks, BDRs do not offer tax exemptions for sales under R$20,000 per month. This distinction underlines the unique regulatory framework governing BDRs compared to traditional Brazilian shares.