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BlackRock’s Bitcoin ETF to debut in Brazil tomorrow

IBIT39 is initially available to professional investors, with an expected launch for regular investors within the next few weeks.

BlackRock Bitcoin spot ETF Brazil

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BlackRock, the world’s leading asset manager, is set to launch its first Brazilian Bitcoin exchange-traded fund (ETF), iShares Bitcoin Trust BDR (IBIT39), on B3, Brazil’s major stock exchange tomorrow, as reported by Brazilian financial news site InfoMoney. This move introduces investors to an easy way to gain exposure to Bitcoin through a regulated, straightforward process.

Karina Saade, president of BlackRock in Brazil, shared her enthusiasm for the launch. She sees IBIT39 as a crucial step in their quest to provide top-notch digital asset investment options.

“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,” Saade explained.

This launch is happening at a time when Brazil’s interest in crypto investments is skyrocketing. According to Felipe Gonçalves from B3, the crypto market in Brazil is young but booming, with R$2.5 billion in assets and daily transactions hitting R$30 million at the end of last year.

“It started with strong volumes, fluctuated a little in two years and, at the end of last year, it reached R$30 million reais per day,” Gonçalves noted.

IBIT39 isn’t just a big deal for BlackRock; it’s a huge win for both big-time and everyday investors in Brazil. The offering is designed to be accessible to keep investment costs low. Initially, the management fee is set at 0.25%, but this will drop to 0.12% after the fund hits its first $5 billion in assets. As of now, BlackRock will only offer IBIT39 to pro-investors, but soon regular investors will also be able to participate.

The ETF is based on Brazilian Depositary Receipts (BDRs), like shares of foreign companies that Brazilians can buy and sell. While the tax rules for BDRs are similar to those for regular stocks, there’s one key difference: no tax exemption for sales under R$20,000 a month, unlike with Brazilian shares, according to InfoMoney.

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