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iShares Bitcoin Trust ETF (IBIT) is an exchange-traded fund that provides direct exposure to the spot price of bitcoin, without requiring investors to purchase, hold, or manage the cryptocurrency directly. The ETF is managed by BlackRock and trades under the ticker IBIT.
Classified as a physically backed cryptocurrency ETF, IBIT aims to reflect, before fees and expenses, the price performance of bitcoin in the spot market. To achieve this objective, the fund holds bitcoin in custody, following specific storage and security protocols in accordance with applicable regulations.
Unlike equity or fixed-income ETFs, IBIT does not seek to generate periodic income or track traditional economic indicators.
Its performance is directly linked to fluctuations in the price of bitcoin, an asset characterized by high volatility and sensitivity to factors such as institutional adoption, regulatory developments, market liquidity, and global macroeconomic conditions.
Exposure and risk profile
IBIT provides concentrated exposure to a single digital asset — bitcoin — and is not linked to traditional economic sectors. As a result, the ETF carries a high-risk profile, with the potential for significant price fluctuations over short periods of time.
This type of product is generally more suitable for investors with higher risk tolerance and a long-term investment horizon who seek alternative diversification or direct exposure to the cryptoasset market.
Structure and costs
Shares of IBIT are traded on the secondary market, while creation and redemption processes are conducted by authorized participants, a mechanism that helps keep the ETF’s market price close to its net asset value (NAV).
The fund features a low expense ratio, typical of passively managed fixed-income ETFs, and does not charge a performance fee. IBIT makes periodic income distributions, derived from interest payments on the U.S. Treasury securities held in its portfolio. The ETF has a single share class and trades exclusively under the ticker IBIT.
The fund charges a management fee typical of spot bitcoin ETFs and does not charge a performance fee. IBIT does not distribute income, as bitcoin does not generate cash flow.
History and context of the ETF
Since its launch, IBIT has been used by both institutional and individual investors as a regulated and streamlined way to access the bitcoin market without the operational complexities of direct asset custody.
