BlackRock Launches New Bitcoin ETF on Canada’s Cboe Exchange

BlackRock has introduced a new Bitcoin exchange-traded fund (ETF) on Canada’s Cboe exchange, offering Canadian investors access to the iShares Bitcoin Trust (IBIT).

According to CoinTelegraph on January 14, the ETF is designed to provide Canadian investors with exposure to BlackRock's flagship U.S. spot Bitcoin fund, the iShares Bitcoin Trust. Cboe Canada noted that the fund would primarily invest in IBIT.

Trading under the name iShares Bitcoin ETF, it will share the same ticker symbol as the U.S. IBIT fund. Shares denominated in U.S. dollars will trade under the ticker IBIT.U. Helen Hayes, Head of iShares Canada at BlackRock, stated, “The iShares fund offers Canadian investors exposure to Bitcoin while eliminating the operational and custody complexities of direct ownership.”

The new ETF will compete with over 10 Bitcoin ETFs already active in the Canadian market. Nasdaq data shows the Canadian Bitcoin ETF market is steadily expanding.

Success of BlackRock’s U.S. Bitcoin ETF

BlackRock’s U.S.-based IBIT ETF, launched in January 2024, has become one of the most popular Bitcoin funds globally, recording net inflows exceeding $37 billion. According to Farside Investors, U.S. Bitcoin ETFs attracted $35 billion in net inflows in 2024, averaging $144 million daily.

In contrast, legacy products like the Grayscale Bitcoin Trust (GBTC) have faced challenges, with over $20 billion in net outflows during 2024, partly due to its high management fees and competition from emerging players like BlackRock.

Bloomberg Intelligence reported that U.S. Bitcoin ETFs surpassed $100 billion in net assets for the first time in November 2024. Steno Research analysts predict additional net inflows of approximately $48 billion into Bitcoin ETFs by 2025.

Bitcoin’s Growing Appeal

Bitcoin is increasingly viewed as a hedge against geopolitical risks and inflation. JP Morgan’s December 2024 report highlighted record-breaking capital inflows into the cryptocurrency market as evidence of its rising significance.

Sygnum Bank, a major asset manager, noted that growing institutional investment could create a positive demand shock for Bitcoin, potentially driving its price higher in 2025.

BlackRock’s latest Bitcoin ETF offering underscores the growing institutional interest in cryptocurrency, further solidifying Bitcoin’s role in the global financial landscape.