BlackRock Launches Bitcoin ETF in Brazil

BlackRock, the world’s largest asset manager, will introduce the iShares Bitcoin Trust ETF to Brazilian investors in a groundbreaking move to further integrate cryptocurrencies into the traditional financial system. The same ETF that was launched in the United States in January will also be launched in Brazil through a partnership with B3, a major Brazilian stock exchange operator.

The ETF, which trades under the ticker IBT39 on B3, is BlackRock’s first cryptocurrency-based fund in Brazil and will be available for trading from April 1. It is designed to track the performance of Bitcoin and is accessible to both qualified and individual investors, the company announced on Portal do Bitcoin.

The ETF comes with a 0.25% management fee and a promotional discount of 0.12% for one year on the first $5 billion of assets under management (AUM). BlackRock’s Brazil ETF consists of Brazilian Depositary Receipts (BDRs), which are certificates representing stocks issued by companies outside Brazil but traded on Brazilian markets.

Despite being taxed similarly to shares, BDRs do not enjoy tax exemptions such as those available for sale of shares for less than R$ 20,000 per month on the stock exchange. The launch comes at a time when Bitcoin is up 43% in February, its highest monthly gain in four years.

Karina Saade, head of BlackRock’s Brazil office, emphasized the company’s commitment to providing investors with high-quality digital asset vehicles. The iShares Bitcoin Trust ETF (IBT39) represents a natural progression of BlackRock’s years of efforts in the digital asset markets and builds on the fundamental capabilities established to date.

Felipe Gonçalves, Head of Interest Rates and Currency Products at B3, highlighted the increasing interest in cryptocurrency markets from investors around the world and the growing demand for such options in Brazilian capital markets. B3 is committed to providing products that meet these needs while ensuring the security of exchange operations, Gonçalves concluded.

This strategic move by BlackRock and B3 marks a notable step toward integrating digital assets into Brazil’s mainstream investment portfolios and represents a growing trend of traditional financial institutions embracing cryptocurrencies.

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