BlackRock is preparing to launch a Bitcoin ETF aimed at Australian investors, as indicated by filings with ASIC.
Recently, a new managed investment scheme named ‘iShares Bitcoin ETF’ was listed on the ASIC Register, followed by the registration of a ‘Trustee for iShares Bitcoin ETF’ on the Australian Business Register.
In the United States, BlackRock manages the iShares Bitcoin Trust ETF, which currently holds over US$93 billion and has achieved a return of 82.67% since its inception in January 2024. This ETF is entirely invested in Bitcoin and imposes a management fee of 0.25%.
James Harrison from York Heritage Capital says that BlackRock aims to capitalize on the increasing interest from Australian investors in specialized products that invest in Bitcoin.
James Harrison, Compliance Manager at York Heritage Capital, states that the introduction of any product related to digital assets is always a positive development – and the fact that it will be launched by a prominent entity like BlackRock certainly adds to its appeal.
“A Bitcoin ETF allows an advisory group and their clients to access Bitcoin exposure more conveniently through a brokerage account. There will be fewer obstacles concerning cold wallets, warm wallets, and private keys, enabling investors to more easily establish a position,” Harrison explains.
“In the manner that most financial advisers or wealth managers construct portfolios using ETFs, the legal framework will align even more seamlessly with the asset allocation strategy, as opposed to a self-custodied Bitcoin exposure. These are the evident benefits regarding accessibility and convenience.
“Additionally, liquidity is a factor; it is tradable. An investor does not need to navigate a crypto-centric exchange to execute trades. Many investors might be unfamiliar with those exchanges and could have concerns about their regulatory status.”
Although there are other comparable ETFs on the market, their underlying assets may be intricate, encompassing various digital currencies.
“If you begin to incorporate other cryptocurrencies such as Solana and others into a Bitcoin-centric ETF, it may complicate adoption for individuals,” Harrison remarks.
“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,” Harrison says.
