BlackRock Brazil is Set To Introduce a Depositary Receipts Fund Mirroring a US BTC ETF

The Brazilian ETF is scheduled to debut on March 1st on the B3 platform. Currently, there are already 13 Brazilian ETFs with exposure to cryptocurrencies.

Source:tr.cryptonews.com

BlackRock's iShares spot Bitcoin exchange-traded fund will now be accessible in Brazil through the introduction of a new BTC BDR (Brazilian Depositary Receipts) ETF. Trading is slated to commence on March 1st, as announced by the world's largest asset manager on February 29th. BlackRock is collaborating with Brazilian financial market infrastructure provider B3 to bring forth this new product, disclosed BlackRock Brazil president Karina Saade at the company's headquarters in São Paulo.

BDRs of foreign ETFs represent securities issued within Brazil and are backed by shares of ETFs issued abroad. Therefore, the Brazilian ETF essentially mirrors the BTC ETF launched by BlackRock in the United States in January. It tracks the performance of the U.S. ETF and comes with an administrative fee of 0.25%, which is mitigated by a one-year exemption on the first $5 billion of assets under management (AUM). BDRs are subject to full taxation.

The Brazilian fund will be accessible to investors with a minimum of 1 million reals ($201,000) already invested in the market. BlackRock Brazil is awaiting approval for retail sales. Thirteen ETFs with crypto exposure are listed on B3, introduced in 2021. Their total value amounts to 2.5 billion reals ($503 million). Thus far this year, Brazilian crypto ETFs have recorded a trade volume of 30 million reals ($5 million).

The BlackRock spot BTC ETF was among the ten approved by the United States Securities and Exchange Commission on January 10th. Within two weeks, the fund amassed $2 billion in assets under management (AUM), equalling the largest debut month in the history of ETFs alongside Fidelity's spot BTC fund. Currently, the BlackRock ETF boasts over $8 billion in AUM. As per various media sources, BlackRock will contemplate launching a spot Ether ETF in Brazil contingent upon receiving SEC approval to do so in the United States.

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