BlackRock, a renowned global investment management firm, is gearing up to launch Brazil’s inaugural Bitcoin exchange-traded fund (ETF), IBIT39, making a significant entry into the country’s cryptocurrency market.

Scheduled for debut on March 1, 2024, on Brazil’s primary stock exchange, B3, this move signifies a pivotal moment in providing regional investors with accessibility to digital assets.

BlackRock’s Bitcoin ETF in Brazil

Responding to the escalating demand for regulated crypto investments, BlackRock’s IBIT39 will allow both qualified and retail investors to track Bitcoin’s performance within a structured and compliant framework. Led by Karina Saade, BlackRock Brazil Country Manager, the ETF aims to cater to the blossoming interest in digital assets within Brazil’s financial arena.

IBIT39 Structured for Market Expansion

The ETF, IBIT39, mirrors Bitcoin’s price movement and comes with a management fee initially at 0.25%, reduced to 0.12% for the first year on the initial $5 billion in assets under management (AUM). This fee strategy is designed to attract investors while ensuring sustainability and profitability for the ETF.

Moreover, IBIT39’s introduction contributes to the growth of Brazil’s crypto ETF market, which emerged in 2021 and has witnessed substantial asset growth since inception. Felipe Gonçalves, B3’s Interest and Currency Products Superintendent, highlighted the market’s expansion to include 13 ETFs with a total asset value of R$2.5 billion, indicating a rising demand for digital asset investment avenues.

BlackRock’s venture into Brazil’s Bitcoin ETF market underscores its dedication to offering innovative investment solutions catering to evolving investor preferences. While this move does not signify an endorsement of Bitcoin itself, it acknowledges the increasing interest among investors in this asset class.

With the imminent launch of IBIT39, investors in Brazil are set to access a regulated and transparent means for Bitcoin investment, further propelling the country’s cryptocurrency market expansion.

FAQ

What is IBIT39?

IBIT39 is the first Bitcoin ETF in Brazil, launched by BlackRock on the B3 exchange, designed to track Bitcoin’s performance.

When is IBIT39 set to launch?

IBIT39 is scheduled to debut on March 1, 2024, on Brazil’s primary stock exchange, B3.

What is the management fee for IBIT39?

Initially, IBIT39 carries a management fee of 0.25%, with a reduction to 0.12% for the first year on the initial $5 billion in assets under management (AUM).