BlackRock Expands with iShares Bitcoin Trust ETF Launch in Canada
Key Points:
- BlackRock debuts its Bitcoin ETF on CBOE Canada, a year after its U.S. launch.
- The Canadian iShares Bitcoin ETF will trade under the IBIT ticker and invest partly in the U.S. ETF.
- The firm’s success with Bitcoin and Ethereum ETFs is fueling demand for more crypto-related ETFs.
Global investment giant BlackRock Inc. has expanded its reach by launching the iShares Bitcoin Trust (IBIT) on CBOE Canada. Announced on January 13, this Canadian launch follows the company’s successful debut of the ETF in the U.S. last year.
The iShares Bitcoin ETF in Canada
The Canadian version, trading under the IBIT ticker, will allocate a significant portion of its capital to the U.S.-listed ETF. The fund is designed to mirror Bitcoin’s performance, accounting for operational costs and liabilities.
BlackRock emphasized that Canadian investors can access the ETF through various channels, such as discount brokerages and full-service financial platforms. Helen Hayes, Head of iShares Canada, stated:
“This fund provides Canadian investors a simple and cost-efficient way to gain Bitcoin exposure, eliminating the complexities of direct custody.”
Milestone Success for the iShares Bitcoin ETF
Since its U.S. launch in January last year, the IBIT ETF has grown rapidly, surpassing $52 billion in assets under management (AUM) by December. In its first 52 weeks, the ETF outperformed key physical gold ETFs in growth metrics. Reports indicate that four spot Bitcoin ETFs are now among the top 20 ETF launches globally.
This growing success is attributed to strong adoption by major asset managers, including firms like Morgan Stanley and Wells Fargo. Additionally, high-profile investors, such as Treasury Secretary nominee Scott Bessent, have holdings in the IBIT fund.
The Rise of New Crypto ETF Products
The introduction of Bitcoin ETFs has sparked a wave of interest in other cryptocurrency-based ETFs, including Ethereum, Litecoin, Solana, and XRP funds.
However, the U.S. SEC, under Gary Gensler, has been hesitant to approve altcoin ETFs. Industry experts anticipate that this could change with the possible appointment of Paul Atkins as the new SEC Chair, potentially paving the way for Solana and XRP ETF approvals later this year.
