BlackRock Asset Management launched its first Bitcoin exchange traded fund (ETF) on the Cboe Canada exchange.
Announced on Monday, the iShares Bitcoin ETF (IBIT), trades under the ticker symbol IBIT for Canadian dollar units and IBIT.U for U.S. dollar units.
This structure allows Canadian investors to gain exposure to Bitcoin without the complexities associated with direct cryptocurrency ownership. Helen Hayes, Head of iShares Canada at BlackRock, emphasized that the ETF provides a “convenient and cost-effective way to gain exposure to Bitcoin” while simplifying the operational and custody aspects.
The markets met the launch with enthusiasm, reflecting the growing acceptance of cryptocurrencies by institutional investors.
BlackRock’s move follows the success of its U.S. counterpart, which has been crowned the fastest-growing fund in history, amassing over USD$52 billion in assets within its first year. The Canadian launch is also expected to bring more institutional capital into Bitcoin, potentially boosting the cryptocurrency’s adoption and stability.
The fund enables investors to gain Bitcoin exposure in tax-advantaged accounts through traditional brokerage platforms. This addresses concerns about custody and exchange account requirements. BlackRock adds institutional credibility to Canada’s crypto market by launching the fund, which joins seven other iShares listings on Cboe Canada. The exchange handles 15 per cent of the trading volume for Canada-listed securities, according to the statement.
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The ETF joins seven other iShares listing on the CBOE
This ETF’s introduction on CBOE Canada is part of BlackRock’s broader strategy to expand its footprint in the cryptocurrency market.
The firm already manages a significant portion of the global market’s assets, and this step cements its role in bridging traditional finance with the burgeoning digital asset space. Furthermore, the ETF joins seven other iShares listings on CBOE Canada, highlighting BlackRock’s commitment to offering diverse investment products tailored to different market needs.
The iShares Bitcoin ETF in Canada is designed to mirror the performance of Bitcoin’s price before accounting for the fund’s expenses and liabilities. Given Bitcoin’s volatility and the ETF’s linkage to the U.S. product, performance will be closely watched by investors. Analysts are optimistic, with some predicting Bitcoin could reach $120,000 by the end of January, driven by such institutional products.
BlackRock shows how ETFs are reshaping Bitcoin exposure. Bitcoin has become a significant digital asset class with potential as a global monetary alternative during institutional uncertainty.
Crypto adoption is rapidly outpacing previous technology trends, reaching 300 million users faster than the internet and mobile phones. BlackRock’s research shows that crypto took only 12 years for widespread adoption, compared to 15 years for the internet and 21 years for mobile phones.
In the U.S., BlackRock’s iShares Bitcoin ETF (IBIT) has amassed USD$52.7 billion in assets, with net inflows reaching USD$1.2 billion during peak periods. Despite some outflows, Bitcoin spot ETFs like IBIT have shown consistent growth through late 2024. This reflects strong institutional demand for regulated crypto exposure.
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