BlackRock Spot Bitcoin ETF Launches in Brazil, ETF Market Secures 4% of Total BTC Supply

BlackRock, the largest in the world Asset manager, announced on Thursday the launch of the iShares Bitcoin Trust ETF (IBIT39) in Brazil. Starting today, Friday March 1st, shares of this index fund, which tracks the spot price of Bitcoin (BTC), will be traded on the Brazilian commodities and futures exchange B3.

BlackRock launches IBIT39 Bitcoin ETF in Brazil

Karina Saade, President of BlackRock in Brazil, highlighted the company's commitment to providing high-quality access tools to investors in the digital asset market. She noted:

IBIT39 is a natural evolution of our long-standing efforts and builds on the foundational capabilities we have built to date in the digital asset market.

Felipe Gonçalves, superintendent of interest and currency products at B3, discussed the growth of the listed crypto market in Brazil. He noted that the market, which began in 2021, now has 13 ETFs with total assets of R$2.5 billion, or about $505 million.

While the market experienced Fluctuations In its early years, it reached an eye-popping daily trading volume of 30 million reais ($6.6 million) by the end of last year, according to local media. Reports in Brasil.

Gonçalves mentioned that investors in crypto ETFs include institutional investors such as funds and retail investors, with the number currently standing at 170,000. The liquidity of the market is provided by non-residents who invest in B3 as a whole.

IBIT39 will reportedly have a management fee of 0.25%, with a one-year waiver reducing the fee to 0.12% once the fund reaches its first $5 billion assets under management (AUM). The product will be made available to the general public, enabling wider participation in the Bitcoin market.

$7.5 billion net inflows into Bitcoin ETFs since launch in the US

BlackRock's IBIT ETF (iShares Bitcoin Trust) has emerged as a major player in the US ETF competition, countering a significant outflow from Grayscale's Bitcoin Trust (GBTC).

BitMEX Research Data shows that on February 29, 2024, positive inflows amounted to $92 million on that day. Notably, BlackRock and GBTC balanced each other out, recording $600 million in opposite directions. The data shows that there has been an impressive net inflow of $7.5 billion since the ETFs began trading on January 11, 2024.

According to BitMEX Research, the total holdings of spot funds that directly hold Bitcoin stood at 776,464 BTC (equivalent to $47.7 billion) as of Friday morning. It is important to remember that the Total supply of BTC There are currently 19.64 million copies in circulation, the maximum circulation is 21 million.

With this in mind, the fact that the ETFs have secured 4% of the total BTC supply is an important milestone. This shows the growing demand for Bitcoin among investors who use these index funds to gain exposure to the cryptocurrency.

The daily chart shows the consolidation of BTC prices. Source: BTCUSD on TradingView.com

BTC continues to consolidate above the $62,000 level, up 1.3% in the last 24 hours.

Featured image from Shutterstock, chart from TradingView.com

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