BlackRock Asset Management has launched Canada's first bitcoin ETF on Cboe Canada, supporting the asset management company's push to simplify cryptocurrency exposure for mainstream investors.

The iShares Bitcoin ETF (iShares Fund) begins trading under the ticker IBIT in Canadian Dollars and IBIT.U in US Dollars, targeting investors seeking exposure to Bitcoin without the usual complexities of direct cryptocurrency ownership.

Such an investment product “helps remove operational and custodial complexities,” Helen Hayes, head of iShares Canada for BlackRock, said in a statement Monday.

Notably, the iShares Fund invests “all or substantially all of its assets” in the iShares Bitcoin Trust ETF in the United States.

The fund allows investors to hold exposure to bitcoin in tax-advantaged accounts through traditional brokerage platforms in an effort to address some concerns investors have, including custodial and exchange account requirements.

BlackRock's entry brings institutional credibility to Canada's cryptocurrency market, as the fund joins seven other iShares Lists On Cboe Canada. The exchange facilitates 15% of the trading volume of securities listed in Canada, according to the statement.

Younger investors, continued growth

Continued investment in cryptocurrency ETFs like IBIT reflects broader demographic shifts, with younger investors showing a greater appetite for digital assets as... Concerns about inflation grow,

BlackRock notes the future a report On how ETFs change exposure to Bitcoin.

Bitcoin has emerged as an important digital asset class in recent years, with potential appeal as a global cash alternative during this period Periods of institutional uncertainty.

Broader adoption of cryptocurrencies is outpacing historical technology trends, reaching 300 million users faster than the Internet and mobile phones, industry data tracked by BlackRock shows.

For comparison, BlackRock research indicates that it took just 12 years for cryptocurrencies to become widely adopted, compared to 15 years for the internet and 21 years for mobile phones.

In the US, BlackRock's iShares Bitcoin ETF (IBIT) amassed $52.7 billion in assets under management, with net inflows reaching a peak of $1.2 billion during its strongest period. Data From CoinGlass offers.

Total Spot Bitcoin ETF Flows Fund View Consistent growth Until late 2024 despite periodic outflows, reflecting strong institutional appetite for regulated cryptocurrencies.

However, Bitcoin ETFs recorded significant outflows on Monday, with market leaders GBTC, FBTC and ARKB collectively losing more than $295 million in a single day, contributing to a total outflow of $313.6 million across the sector.

On the same day, Bitcoin briefly traded below $90,000 before recovering to the $95,000 level at press time. Data From CoinGecko offers.

Modified by Sebastian Sinclair