BlackRock launches Bitcoin spot ETF in Brazil, ETF market accounts for 4% of total Bitcoin supply

BlackRock, one of the world’s largest asset managers, announced that it will launch the iShares Bitcoin Trust ETF (IBIT39) in Brazil. The fund, which will be listed on the Brazilian Commodities and Futures Exchange (B3) on March 1, aims to track the Bitcoin (BTC) spot price index. This move marks further recognition and acceptance of Bitcoin in financial markets, providing Brazilian investors with more opportunities to diversify their investments.

BlackRock Launches IBIT39 Bitcoin ETF in Brazil

Karina Saade, President of BlackRock Brazil, emphasized the company’s commitment to providing high-quality access tools to investors in the digital asset market.

She said:

"IBIT39 is a natural extension of our long-term efforts and relies on the fundamental capabilities we have established in the digital asset market."

Felipe Gonçalves, B3’s Head of Interest and Currency Products, discusses the rapid growth of Brazil’s listed cryptocurrency market. He emphasized that since its launch in 2021, the market has developed 13 ETFs, with total assets reaching 2.5 billion reais (approximately US$505 million).

While the market experienced volatility in the early days, local Brazilian media reported that by the end of last year, average daily trading volume had reached a staggering 30 million reais ($6.6 million).

Gonçalves pointed out that the investor group of cryptocurrency ETFs covers institutional investors, funds and individual investors, currently totaling 170,000 people. Market liquidity is mainly provided by non-residents investing in B3.

IBIT39's management fee is reported to be 0.25%, and will be reduced to 0.12% through a one-year abatement once the fund reaches its first $5 billion in assets under management (AUM). The product will be open to the public, allowing a wider range of Bitcoin market participants.

Since the launch of the Bitcoin ETF in the United States, net inflows have reached US$7.5 billion

BlackRock’s IBIT (iShares Bitcoin Trust) ETF has become a major player in the U.S. ETF race since the ETF began trading on January 11, 2024, as a hedge against massive outflows from the Grayscale Bitcoin Trust (GBTC).

BitMEX research data shows that as of February 29, 2024, the forward flow amount on that day was $92 million. Notably, BlackRock and GBTC offset each other, experiencing $600 million in capital flows. Data shows that since the ETF began trading on January 11, 2024, there has been an impressive net inflow of assets of $7.5 billion.

According to data from BitMEX Research, total holdings of spot funds that hold Bitcoin directly reached 776,464 BTC (equivalent to $47.7 billion) on Friday morning.

The fact that the ETF accounts for 4% of the total supply of Bitcoin is an important milestone considering that the total supply of Bitcoin in circulation is currently 19.64 million, with a maximum limit of 21 million. It demonstrates the growing demand from investors to gain exposure to cryptocurrencies (Bitcoin) using these index funds.

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