BlackRock plans Bitcoin ETF for Aussie investors
BlackRock is gearing up to list a Bitcoin ETF for Australian investors, according to ASIC filings.
Last month, a new managed investment scheme titled 'iShares Bitcoin ETF' appeared on the ASIC Register, followed by the registration of a 'Trustee for iShares Bitcoin ETF' on the Australian Business Register.
BlackRock currently runs the iShares Bitcoin Trust ETF in the US, which houses over US$93 billion and has returned 82.67% since inception in January 2024. It has a 100% weighting in Bitcoin and charges a 0.25% management fee.
We understand BlackRock is looking to tap into the growing demand from Australian investors for dedicated products investing in Bitcoin.
Solutions Capital managing director and principal Dennis Mothoneos says that any launch of a digital asset-related product is always welcome - and the fact it'll be coming from a big name like BlackRock certainly doesn't hurt.
"A Bitcoin ETF means an adviser group and their investors can more easily access Bitcoin exposure through a brokerage account. There'll be fewer hurdles regarding cold wallets, warm wallets and private keys, allowing investors to be more readily build a position," Mothoneos says.
"In the way most financial advisers or wealth managers build portfolios through ETFs, the legal structure will fit even easier with the asset allocation framework, rather than a self-custody Bitcoin exposure. These are the clear advantages in regards to accessibility and convenience.
"And also, liquidity; it's tradable. An investor doesn't need to go through a crypto-focused exchange to trade. Many investors may be unfamiliar with those exchanges and may be concerned about how they're regulated."
While there are other similar ETFs available in the market, their underlying assets may be complex, including multiple digital currencies.
"If you start introducing other cryptocurrencies like Solana and others in a Bitcoin-focused ETF, it may be more difficult for people to adopt it," Mothoneos says.
"If a big institution is going to come to market it is best they start with a relatively simple product. The first step should be prioritising that adoption with a primary focus to make investors feel comfortable holding that ETF."
Investors will generally feel more secure investing via a reputable source, since it is an "unfamiliar" area for first-time investors, he noted.
"... for a regular investor or adviser in Australia, the crypto-native process of Bitcoin investing is probably just too unfamiliar. If you can access Bitcoin via the convenience of an ETF... that will make the asset more accessible," Mothoneos says.
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