After launching a spot Bitcoin ETF on U.S. markets last year, BlackRock has launched a similar product for the Canadian market.
The iShares Bitcoin ETF, which launched Monday on the CBOE Canada Exchange, trades under the ticker symbol IBIT, and simply invests in its U.S. counterpart but is priced in Canadian dollars and trades on a Canadian exchange.
BlackRock’s Head of Digital Assets Robert Mitchnick says that’s because Canada is a distinct market for investors who want to invest here instead of abroad.
“It’s about bringing access… to Canadian investors,” Mitchnick said in an interview with BNN Bloomberg Tuesday. “Canada is a market where we feel like there is a significant opportunity.”
BlackRock’s product was one of a dozen that launched in the U.S. last year, but the fund drew $50 billion in assets, far more than most other new entrants, because of its liquidity and the “value proposition” of the product.
“The expertise and track record of the world’s largest ETF manager, combined with the investments made over the years on BlackRock’s digital asset capabilities is a very compelling value proposition,” he noted, adding that the fund has an annual management fee of 0.32 per cent.
With Bitcoin being one of the best performing asset classes in 2024 and poised for more gains in 2025 under the crypto-friendly Trump administration, more and more investors are investing in the digital asset directly.
But Mitchnick says the ETF product still appeals to a broad number of investors.
“We’ve seen this resonate with all manner of investor types,” he said. “It has the potential to be a unique diversifier.”