Nikolas Sargeant
BlackRock has entered into a partnership with the B3 stock exchange in Brazil to launch the iShares Bitcoin Trust ETF's Brazilian Depositary Receipts (BDRs). This move marks BlackRock's inaugural venture into the Brazilian cryptocurrency ETF market. Scheduled to commence trading on Friday, the Bitcoin ETF, coded as IBIT39, replicates BTC's performance and introduces a management fee of 0.25%, temporarily reduced to 0.12% for the first $5 billion in assets under management.
Unlike direct shares, it's worth noting that Brazilian Depositary Receipts (BDRs) lack tax exemptions similar to those for local share sales under $20,000. Karina Saade, BlackRock’s Brazilian Country Manager, emphasized the ETF's significance in their digital asset strategy, viewing it as a natural progression built on the fundamental capabilities established over the years in the digital asset market.
Saade highlighted the ETF, positioned under the code IBIT39, as a crucial component aligning with BlackRock’s long-term vision for digital assets. This move is considered a substantial step forward in their journey to provide high-quality access vehicles to investors. Felipe Gonçalves, B3’s superintendent of Interest and Currency Products, recognizes the ETF as an opportunity for investors to diversify their portfolios with exposure to Bitcoin, reflecting the global surge in interest towards cryptocurrency investments.
