BlackRock Launches New Bitcoin ETF on Cboe Canada

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# BlackRock Sees Limited Demand for Ethereum Among Clients Robert Mitchnick, BlackRock's Head of Digital Assets, recently shared insights into the asset management giant's stance on cryptocurrency offerings, emphasizing a strong client preference for Bitcoin over Ethereum. During a fireside chat at the Bitcoin Investor Day conference in New York, Mitchnick highlighted the comparative lack of interest in Ethereum and other cryptocurrencies among BlackRock clients. ## Bitcoin Dominates Client Interest Mitchnick noted that Bitcoin is the primary focus of interest for BlackRock's clientele, with Ethereum garnering only a modest level of attention. This observation underscores the prevailing market trend where Bitcoin continues to be viewed as the leading digital asset. For cryptocurrencies beyond Bitcoin and Ethereum, Mitchnick pointed out that the demand from BlackRock's client base is minimal. ## Misconception About BlackRock's Crypto Services Addressing the speculation about BlackRock launching a range of crypto-related services, including an exchange-traded fund (ETF) for the meme-inspired cryptocurrency dogwifhat (WIF), Mitchnick clarified that the company is not looking to expand its offerings into a wide array of crypto assets. He underscored that BlackRock's primary focus does not involve diversifying into numerous other crypto services. ## BlackRock's Bitcoin ETF Attracts Significant Interest The discussion also touched upon BlackRock's recent foray into the digital assets market with the launch of the Bitcoin Bitcoin Fund (IBIT). The ETF quickly became one of the top-performing funds in the market, drawing $15 billion in assets and significantly outperforming other funds launched in the same period. Mitchnick attributed this success to the enduring interest and demand from clients for Bitcoin exposure, which had remained strong through various market conditions. ## Tokenized Asset Fund on Ethereum Network Despite the limited client interest in Ethereum, BlackRock has made moves on the Ethereum network, unveiling the tokenized asset fund BUIDL. This initiative, in collaboration with Securitize, showcases BlackRock's exploration of blockchain technology for asset tokenization, highlighting a cautious yet strategic approach to incorporating digital assets into their portfolio offerings. In summary, while BlackRock recognizes the potential of cryptocurrencies like Ethereum, its digital asset strategy remains heavily weighted towards Bitcoin, reflecting client preferences and market dynamics. The company's cautious expansion into the digital asset space indicates a focused approach, prioritizing demand and exploring innovative solutions within a select range of cryptocurrencies.

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Global asset management giant BlackRock has introduced a new Bitcoin exchange-traded fund (ETF) on Cboe Canada, offering Canadian investors simplified access to Bitcoin investments.

Key Features of BlackRock’s Bitcoin ETF

The new fund, named iShares Bitcoin ETF, is directly linked to BlackRock’s flagship US spot Bitcoin fund, the iShares Bitcoin Trust (IBIT).

  • Investment Structure: The ETF will invest “all or substantially all” of its assets in the US-based IBIT.
  • Trading Details:
    • Canadian investors can trade shares under the ticker IBIT.
    • Shares denominated in US dollars will trade under the ticker IBIT.U.
  • Simplified Bitcoin Access: Helen Hayes, BlackRock’s head of iShares Canada, highlighted the ETF’s ability to simplify exposure to Bitcoin by eliminating operational and custody challenges associated with directly holding cryptocurrency.

This addition strengthens Canada’s position as a hub for Bitcoin ETFs, joining over a dozen similar funds already trading on Canadian exchanges, according to Nasdaq.

Surging Demand for Bitcoin ETFs

BlackRock’s iShares Bitcoin Trust has gained global attention, becoming the most popular Bitcoin ETF since its January 2024 launch. Notable metrics include:

  • Massive Inflows: The US IBIT ETF has seen over $37 billion in net inflows, helping US Bitcoin ETFs collectively reach $35 billion in aggregate inflows during 2024.
  • Industry Growth: US Bitcoin ETFs broke the $100 billion net assets milestone in November 2024, according to Bloomberg Intelligence.

This growth reflects a shift in investor sentiment, with Bitcoin becoming an increasingly important part of diversified portfolios. Analysts and institutions expect this trend to accelerate:

  • Future Projections: Steno Research predicts Bitcoin ETFs will attract an additional $48 billion in net inflows in 2025.
  • Institutional Interest: JPMorgan has noted growing adoption of Bitcoin as a hedge against geopolitical risks and inflation, with record capital flowing into crypto markets.

The surging institutional adoption of Bitcoin ETFs could create significant demand shocks for Bitcoin. Asset manager Sygnum Bank predicts this increased demand could drive Bitcoin prices to new heights in 2025.

Manjeet Mane
Manjeet Mane
Manjeet Mane, an accomplished developer in cryptocurrency and blockchain technology, has devoted years to advancing these fields. With a firm belief in their transformative power across industries, he specializes in full-stack development.

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