BlackRock Canada launches ETF with 3% Bitcoin allocation

BlackRock Canada listed two ETFs on the Toronto Stock Exchange Monday, with one portfolio allocating 3% of assets to Bitcoin and 97% to global equities.

"The launch of these two funds shows our continued commitment to expanding access to investing for Canadians through low-cost, one-ticker solutions," Steven Leong, head of Canada product and iShares at BlackRock, said.

The iShares Equity + Bitcoin ETF Portfolio, trading as IBQT, holds other iShares ETFs for its equity sleeve spanning Canadian, US, international and emerging-market stocks, with Bitcoin exposure through BlackRock's Canadian iShares Bitcoin ETF (IBIT) on Cboe Canada. IBQT carries a 0.22% management fee. The second fund, the iShares Core MSCI All-International Equity Index ETF (XINT), tracks the MSCI ACWI ex North America IMI Index covering more than 5,000 companies across over 40 developed and emerging markets, with a 0.23% expense ratio.

The launches extend BlackRock's push to wrap Bitcoin inside conventional investment structures. Its US-listed iShares Bitcoin Trust is the largest American spot Bitcoin ETF, holding about $47.9 billion in assets, according to CoinMarketCap. US spot Bitcoin ETFs drew roughly $853.5 million over five sessions from Aug. 3 through Aug. 7, with BlackRock's IBIT accounting for an estimated $693 million, or about 81 percent of the total.

A 3% Bitcoin slice inside a diversified equity fund

The 3% Bitcoin allocation in IBQT is conservative by design, giving investors a toehold in crypto without the volatility of a larger position. The fund's performance will remain tied primarily to global equity markets, though Bitcoin price moves can shift the crypto share between rebalancing periods. Investors also take on the fees, volatility and market risks attached to the underlying Canadian Bitcoin ETF.

IBQT extends BlackRock's move beyond standalone spot Bitcoin products. In June, the asset manager launched its Bitcoin income ETF BITA in the United States, which invests mainly in the US-listed iShares Bitcoin Trust and sells covered call options to generate monthly income. IBQT takes a more conservative approach than that product.

Both new funds are managed by BlackRock Asset Management Canada through the RBC iShares alliance. BlackRock said its iShares business managed about $6.2 trillion in assets across more than 1,700 ETFs as of June 30.

The rollout shows regulated Bitcoin exposure moving into broader portfolio funds rather than remaining limited to standalone crypto vehicles. The 3% target limits Bitcoin's influence compared with a spot ETF while letting investors maintain exposure if the asset rises. Whether Canadian investors favor this pre-set allocation over holding equity and Bitcoin funds separately will shape future demand.

This article is for informational purposes only and does not constitute investment advice.