BlackRock Partners with B3 To Launch Bitcoin ETF in Brazil

Table of Contents

• BlackRock Brings ETFs To Brazil
• iShares Bitcoin Trust ETF BDR
• What is BDR?
• Global Success and Expansion

BlackRock has partnered with the Brazilian stock exchange, B3, to launch its Bitcoin ETF’s Brazilian Depository Receipts. 

BlackRock Brings ETFs To Brazil

BlackRock’s iShares spot Bitcoin exchange-traded fund will be available in Brazil thanks to the launch of a new BTC BDR (Brazilian Depositary Receipts) ETF. 

BlackRock, which is the world’s largest asset manager, announced on 29 February that it is partnering with Brazilian financial market infrastructure provider B3 to introduce its Bitcoin ETF services in the South American country. 

BlackRock Brazil president Karina Saade said 

“The launch of the iShares Bitcoin Trust ETF BDR, IBIT39, advances the innovation of ETFs and allows access to bitcoin for investors through a security — the ETF BDR — that can be incorporated […] into their portfolios."

iShares Bitcoin Trust ETF BDR

BlackRock’s iShares spot Bitcoin exchange-traded fund will be available in Brazil thanks to the launch of a new BTC BDR (Brazilian Depositary Receipts) ETF. The impending launch marks BlackRock’s first foray into the Brazilian cryptocurrency ETF market. Qualified investors in Brazil can start trading on the ETF starting Friday, March 1.  

Saade said, 

“Our digital asset journey has been underpinned by the goal of providing high-quality access vehicles to investors. IBIT39 is a natural progression of our efforts over many years and builds on the fundamental capabilities we have established so far in the digital asset market.”

With the launch of BlackRock's Bitcoin ETF, the Brazilian cryptocurrency market has expanded its offerings, which have already included 13 ETFs with crypto exposure listed on B3 since 2021. 

What is BDR?

Brazilian Depositary Receipts (BDRs) represent securities issued in Brazil, supported by shares from ETFs issued overseas. Essentially, the Brazilian ETF mirrors the BTC ETF launched by BlackRock in the United States in January, tracking its performance closely. This ETF charges a nominal administrative fee of 0.25%, albeit offset by a one-year exemption on the initial $5 billion of assets under management (AUM). Unlike direct shares, BDRs do not enjoy tax exemptions similar to those applicable to local share sales below $20,000.

Initially, the Brazilian Bitcoin ETF will be available to qualified investors who have at least 1 million reals ($201,000) already invested in the market. 

Global Success and Expansion

BlackRock's spot Bitcoin ETF, initially launched in the United States, achieved remarkable success, reaching $2 billion in assets under management (AUM) within two weeks of its debut. The fund's rapid growth underscores the increasing demand for Bitcoin exposure among institutional and retail investors alike. BlackRock Brazil is awaiting approval for retail sales, indicating potential broader accessibility in the future.

While focusing on the Brazilian market, BlackRock remains open to further expansion opportunities. Reports suggest that the company may consider launching a spot Ether ETF in Brazil, contingent upon receiving regulatory approval from the SEC for its application for the same in the US. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.