BlackRock Scales Bitcoin ETF in Australia

Just yesterday, we discussed how Fidelity is scaling in the UK, and now BlackRock scales Bitcoin ETF in Australia: local access to IBIT on ASX is expected by mid-November. At the same time, the fund structure wraps the US-listed iShares Bitcoin Trust and provides advisors with retail access without direct ownership of the asset.

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More Details on BlackRock's offering in Australia

BlackRock Australia announced plans to list the iShares Bitcoin ETF (IBIT) on the Australian Securities Exchange in mid-November. According to the stated parameters, the fund will charge 0.39% per annum and will wrap the existing US-listed iShares Bitcoin Trust, launched in January 2024, to make the offering to local investors:

"simple, cost-effective, and regulated way to access Bitcoin without the technical and operational complexities of holding the asset directly."

The key to the stated accessibility is that the Australian IBIT acts as a wrapper around the US-listed iShares Bitcoin Trust. For advisor channels, this eliminates the need for direct custody and operational procedures for crypto assets on the end client’s side, replacing it with ETF compliance on ASX. Overall, this allows existing processes for trade booking, reporting, and suitability to be used in portfolio construction without changing the back office.

Tamara Stats, director of institutional client business at BlackRock Australasia, said:

"The introduction of IBIT in Australia highlights BlackRock's ongoing efforts to innovate and reflects the growing interest from institutional investors seeking efficient, convenient access to Bitcoin as a potential diversifier within their multi-asset portfolios."

The company notes that the launch of IBIT in Australia follows the expansion of the fixed-income line via the iShares Core Global Aggregate Bond (AUD Hedged) ETF, benchmarked to the Bloomberg Global Aggregate Bond Index (AUD Hedged) and expected to list in early November with a 0.18% per annum fee. In the local market, iShares ETFs have exceeded $50 billion in AUM, which BlackRock attributes to sustained advisor-channel demand for core building blocks of portfolios and innovations in ETF structures.

Conclusion

Crypto indices continue to expand the presence of their products worldwide, while devising various ways to ensure access and remain in compliance. This indeed promises a simplification of portfolio advisory and the addition of Bitcoin as a diversifier without departing from the customary operational discipline of the ASX market. Stay tuned for the latest updates and opportunities in the new economy, crypto industry, and blockchain developments.