BlackRock Launches iShares Spot Bitcoin ETF on Cboe Canada

BlackRock Asset Management Canada Limited has launched the iShares Spot Bitcoin ETF. It is trading on Cboe Canada under the tickers IBIT and IBIT.U.

The exchange-trade fund (ETF) gives investors in Canada a way to invest in Bitcoin with regulated access while not having to use exchanges to do so. This development presents a clear route for institutional and retail investors to purchase bitcoin using conventional brokerage accounts.

The iShares Bitcoin ETF is an exchange-traded fund that aims to replicate the performance of Bitcoin net of fees and other costs. It invests in the iShares Bitcoin Trust ETF (U.S. IBIT) through which it has long-term exposure to Bitcoin.

The fund seeks to provide a solution to operational. As well as address custody risks that are usually inherent with direct ownership of Bitcoin.

Trading Begins on Cboe Canada

The iShares Bitcoin ETF is available for trading at the Cboe Canada exchange. It is one of the largest Canadian exchanges for innovative financial instruments.

This ETF is listed in both Canadian dollar (IBIT) and the US dollar (IBIT.U). The fund can be bought from most brokerage firms  from discount brokerage firms to full-service investment dealers.

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Cboe Canada accounts for about 15% of all the trading in Canadian listed securities. The exchange has recently added products such as spot cryptocurrency ETFs. It has been instrumental in the expansion of the digital asset investment market.

Rob Marrocco, the Global Head of ETF Listings at Cboe, added:

“Investors are looking for crypto exposure through exchange-listed products, and Cboe plans to offer this by using our global listing infrastructure as well as our derivatives knowledge.”

As a result, Cboe Canada has evolved into an ETF marketplace for major Canadian financial institutions. It is a platform for new financial instruments. This launch supports a key objective of Cboe to increase its offering within the cryptocurrency investment space.

BlackRock’s Strategy to Broaden Bitcoin Access

The launch of the iShares Bitcoin ETF by BlackRock is in line with the firm’s overall plan to provide investors with exposure to various asset classes.

With this regulated Bitcoin ETF, BlackRock is hoping to answer the growing call for crypto investment solutions while at the same time avoiding the challenges that accompany owning Bitcoin directly.

According to Helen Hayes, the Head of iShares Canada at BlackRock, it was crucial to help Canadian investors access new investment solutions. She said,

“The iShares Fund offers Canadian investors an efficient means of accessing Bitcoin and alleviates the operational and custodial risks associated with owning Bitcoin outright.”

This comes at a time when BlackRock has been on a mission of providing efficient investment tools. This is something that has happened at a good time given that Bitcoin for instance has given a return of investment of 113.97% in the last one year and has therefore continued to attract more investors.

Growing Interest in Regulated Bitcoin Investment

The institutional and retail interest in the regulated Bitcoin investment products remain on the rise due to the positive performance of Bitcoin and its rising adoption. The iShares Bitcoin ETF enables investors to get exposure to the digital currency without having to deal with bitcoin exchanges.

This shows that a lot of work is being done in the financial industry to make way for cryptocurrencies within the existing investment structures. It is also important to mention that Cboe stands behind the iShares Bitcoin ETF, which fits with the company’s mission to develop the crypto market.

Mr Marrocco also said,

“We are glad to be associated with BlackRock, and we look forward to contributing towards its growth on the international stage through our global listings network.”

As a result of this launch, BlackRock has become one of the many financial companies that provide Bitcoin ETFs and increase the reach of the digital asset to investors. When the ETF is launched for trading on Cboe Canada, it is anticipated that investors in search of a secure and regulated means of accessing Bitcoin will take interest in the product.