BlackRock Spot Bitcoin ETF Launches In Brazil, ETF Market Secures 4% Of Total BTC Supply
March 01 2024 - 9:00PM
NEWSBTC
BlackRock, the world’s largest asset manager, announced the iShares
Bitcoin Trust ETF (IBIT39) launch in Brazil on Thursday. Starting
today, Friday, March 1, shares of this index fund, which tracks the
spot price of Bitcoin (BTC), will be traded on the Brazilian
Commodities and Futures Exchange, known as 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 vehicles to investors in the digital asset
market. She stated: 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. Related Reading:
Crypto Analyst Reveals Why Most Realistic XRP Price Lies Between
$13 And $39 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 started 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-catching daily trading volume of R$30
million reais ($6.6 million) by the end of last year, according to
local media reports in Brazil. Gonçalves mentioned that
investors in crypto ETFs include institutional investors, such as
funds, and individual investors, with a current number of 170,000.
Liquidity in the market is provided by non-residents investing in
B3 as a whole. IBIT39 will reportedly have a management fee of
0.25%, with a one-year waiver that reduces the fee to 0.12% once
the fund reaches its first $5 billion in assets under management
(AUM). The product will be made available to the general public,
allowing broader participation in the Bitcoin market. $7.5B Net
Inflow In Bitcoin ETFs Since Launch In The US BlackRock’s IBIT
(iShares Bitcoin Trust) ETF has emerged as a notable player in the
US ETF race, countering a significant outflow from Grayscale’s
Bitcoin Trust (GBTC). BitMEX research data shows that on February
29, 2024, positive flows amounted to $92 million for the day.
Notably, BlackRock and GBTC offset each other, experiencing $600
million in opposite directions. The data shows that since the ETFs
began trading on January 11, 2024, there has been an impressive net
inflow of $7.5 billion. Related Reading: Shiba Inu Could See A
2,100% Run If This Happens The overall holdings of spot funds,
which directly hold Bitcoin, stood at 776,464 BTC (equivalent to
$47.7 billion) on Friday morning, according to BitMEX Research.
It’s essential to consider that the total BTC supply currently in
circulation is 19.64 million, with a maximum limit of 21
million. With this context, the fact that the ETFs have
secured 4% of the total BTC supply is a significant milestone. It
demonstrates the growing demand for Bitcoin among investors
utilizing these index funds to gain exposure to the cryptocurrency.
BTC continues to consolidate above the $62,000 mark, rising 1.3% in
the past 24 hours. Featured image from Shutterstock, chart from
TradingView.com
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