BlackRock Asset Management launched its first Canadian Bitcoin ETF on Cboe Canada, supporting the asset management firm’s push to simplify cryptocurrency exposure for everyday investors.
The iShares Bitcoin ETF (iShares Fund) has begun trading under the IBIT ticker in Canadian dollars and IBIT.U in US dollars, targeting investors seeking Bitcoin exposure without the usual complexities of direct crypto ownership .
Such an investment product “helps remove operational and custody complexity,” Helen Hayes, head of iShares Canada for BlackRock, said in a statement Monday.
Notably, the iShares Fund invests “all or substantially all of its assets” in the iShares Bitcoin Trust ETF in the US.
The fund allows investors to hold Bitcoin exposure in tax-advantaged accounts through traditional brokerage platforms, in an effort to address certain investor concerns, including custodial and exchange account requirements.
BlackRock’s entry brings institutional credibility to the Canadian crypto market, with the fund joining seven other iShares entries on Cboe Canada. According to the statement, the exchange facilitates 15% of the trading volume of Canadian-listed securities.
Younger investors, consistent growth
Continued investments in crypto ETFs like IBIT reflect broader demographic shifts, with younger investors showing more interest in digital assets as concerns about inflation to grow,
BlackRock notes in a prospective report on how ETFs change exposure to Bitcoin.
Bitcoin has emerged as a major digital asset class in recent years, with potential appeal as a global monetary alternative periods of institutional uncertainty.
Cryptocurrency adoption more broadly is outpacing historical technology trends, reaching 300 million users faster than both the Internet and mobile phones, according to industry data tracked by BlackRock.
By comparison, BlackRock’s research shows that it took only 12 years for crypto to become widely adopted, compared to the 15 years and 21 years of the mobile internet.
In the US, BlackRock’s iShares Bitcoin ETF (IBIT) has amassed $52.7 billion in assets under management, with net inflows reaching peaks of $1.2 billion during the strongest periods. facts of CoinGlass shows.
Total Bitcoin spot ETF inflows for the fund show consistent growth until the end of 2024, despite periodic outflows, due to a strong institutional appetite for regulated cryptocurrency exposure.
Still, Bitcoin spot ETFs recorded significant outflows on Monday, with market leaders GBTC, FBTC and ARKB collectively losing more than $295 million in a single day, contributing to a total market outflow of $313.6 million across the sector.
On the same day, Bitcoin briefly traded below $90,000 before regaining the $95,000 level at the time of writing. facts of CoinGecko shows.
Edited by Sebastian Sinclair
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