- BlackRock’s iShares Bitcoin ETF surpasses $52 billion AUM within a year of its US launch.
- BlackRock introduces iShares Bitcoin ETF in Canada, broadening its market reach.
- BlackRock’s Bitcoin ETF in Canada allows easy access through discount brokers and full-service dealers.
iShares Bitcoin Trust (IBIT) was launched on CBOE Canada by BlackRock Inc., making it available in the Exchange-Traded Fund (ETF) product suite. The move comes nearly one year after the product was successfully launched in the United States. Similarly, the Canadian version of the ETF will trade under the IBIT ticker and seeks to copy Bitcoin’s performance while managing some operational expenses and liabilities.
The iShares Bitcoin ETF provides Canadian investors with an accessible and efficient solution to investing in Bitcoin without managing a Bitcoin investment directly. At the product launch, Helen Hayes, Head of iShares Canada at BlackRock, pointed out that this ETF can be accessed through different channels, including discount brokerage platforms and full-service dealers nationwide. With this offering, this ETF has become one of seven cryptocurrency ETF products listed in the Canadian market, indicating that more traditional financial institutions accept and integrate digital assets.
Milestones and Market Adoption
Since its U.S. debut, the BlackRock Bitcoin ETF has reached an impressive $52 billion in assets under management (AUM), surpassing several milestones previously held by physical gold ETFs. This achievement underscores the ETF’s acceptance and confidence among investors. In addition to BlackRock, other large investment companies like Morgan Stanley and Wells Fargo have also accessed Bitcoin through this ETF.
The launch has coincided with broader financial trends, with major asset managers globally increasingly incorporating cryptocurrency into their portfolios. Such adoption plays a crucial role in legitimizing and stabilizing the cryptocurrency market. Additionally, although required to divest his holdings, Treasury Secretary nominee Scott Bessent is noted for his investment in IBIT, signaling strong confidence from high-profile government and financial figures.
The Future of Crypto ETFs
Expanding BlackRock’s Bitcoin ETF into Canada could pave the way for more diversified crypto ETF products. Inspired by the success of Bitcoin-based funds, there are now active filings with the U.S. SEC for other cryptocurrency ETFs, including those based on Ethereum, Litecoin, Solana, and XRP. The U.S. Securities and Exchange Commission (SEC) attitude, led by Gary Gensler, has historically been cautious, particularly towards altcoin-based ETFs.
However, with Paul Atkins’s expected appointment as the next SEC Chairman, the regulatory landscape might shift favorably toward these products. Industry experts anticipate that 2025 could see the approval of Solana and XRP ETF applications, which would significantly broaden the crypto ETF market.
