TLDR
BlackRock has launched its iShares Bitcoin ETF (IBIT) on Cboe Canada, offering both CAD and USD trading options and providing Canadian investors easier access to Bitcoin exposure
The fund invests primarily in the U.S. iShares Bitcoin Trust ETF and allows investors to hold Bitcoin exposure in tax-advantaged accounts through traditional brokerage platforms
Treasury Secretary nominee Scott Bessent plans to divest his BlackRock Bitcoin ETF holdings before Trump’s inauguration to comply with Federal ethics guidelines
The U.S. iShares Bitcoin ETF has accumulated $52.7 billion in assets under management, though it recently experienced a record-high outflow of $333 million on January 2, 2025
Bitcoin spot ETFs saw collective outflows of $313.6 million on Monday, with Bitcoin trading around $95,000 at press time
BlackRock Asset Management has expanded its cryptocurrency offerings with the launch of its first Canadian Bitcoin ETF on Cboe Canada, marking another step in the company’s growing digital asset presence. The new iShares Bitcoin ETF began trading on January 13, 2025, under the tickers IBIT (Canadian dollars) and IBIT.U (U.S. dollars).
The ETF is structured to track Bitcoin’s price movements while accounting for operational costs. It accomplishes this by investing its assets in the U.S. iShares Bitcoin Trust ETF, allowing investors to gain Bitcoin exposure through their existing brokerage accounts.
Helen Hayes, Head of iShares Canada at BlackRock, explained the practical benefits of the new fund. “The iShares Fund provides Canadian investors with a convenient and cost-effective way to gain exposure to Bitcoin and helps remove the operational and custody complexities of holding Bitcoin directly,” she said.
The fund joins seven other iShares products already trading on Cboe Canada, which handles about 15% of Canada’s listed securities trading volume. Investors can access IBIT through various channels, including discount brokerage platforms and full-service dealers.
Rob Marrocco, who leads global ETF listings at Cboe Canada, highlighted the growing demand for cryptocurrency exposure through traditional investment vehicles.
“Investors increasingly seek crypto exposure through exchange-listed wrappers, and Cboe intends to meet this demand by leveraging both our global listings capabilities and our derivatives expertise,” he stated.
In the United States, BlackRock’s iShares Bitcoin ETF has shown strong performance, accumulating $52.7 billion in assets under management. The fund has seen net inflows reaching as high as $1.2 billion during peak periods, according to data from CoinGlass.
However, recent market activity has shown some volatility. On January 2, 2025, the U.S. iShares Bitcoin Trust experienced its largest-ever outflow of $333 million. Alex Obchakevich, founder of Obchakevich Research, attributed this to profit-taking by investors at the start of the new year.
The broader Bitcoin spot ETF market has also seen recent fluctuations. On Monday, major funds including GBTC, FBTC, and ARKB recorded combined outflows of over $295 million, contributing to a total market outflow of $313.6 million across the sector.
These market movements coincided with Bitcoin price volatility, as the cryptocurrency briefly dipped below $90,000 before recovering to $95,000 levels.
The launch comes at a time of increased institutional interest in cryptocurrency investments. BlackRock’s research indicates that crypto adoption has outpaced historical technology trends, reaching 300 million users faster than both the internet and mobile phones.
Meanwhile, the ETF has attracted attention in political circles. Treasury Secretary nominee Scott Bessent announced plans to divest his holdings in BlackRock’s Bitcoin ETF before the upcoming presidential inauguration, following Federal ethics guidelines requiring nominees to sell certain assets within 90 days of Senate confirmation.
The new Canadian ETF allows investors to hold Bitcoin exposure in tax-advantaged accounts through traditional brokerage platforms, addressing common concerns about custody and exchange account requirements.
BlackRock’s data shows younger investors display growing interest in digital assets, partly driven by inflation concerns. This demographic trend aligns with the broader institutional acceptance of cryptocurrency as an asset class.
The fund’s structure enables investors to gain Bitcoin exposure without directly holding the cryptocurrency, simplifying the investment process for those who prefer traditional investment vehicles.
Cboe Canada has confirmed its commitment to expanding its digital asset offerings through its trading infrastructure, positioning the exchange to support future cryptocurrency investment products.
The launch adds to BlackRock’s expanding cryptocurrency investment options, as the asset manager continues to develop products meeting evolving investor demands in the digital asset space.
