Sponsor fee: 0.25%, waived to 0.12% for 12 months up to $5bn in assets.*
WHAT IS BITCOIN?
Bitcoin is the first form of internet-native money to gain global adoption and the world's largest cryptocurrency.¹
Bitcoin transactions are sent using blockchain technology which allows it to be sent between any two parties without requiring a bank. Blockchain technology allows bitcoin to be:
Global
Send payment regardless of location with no currency conversion needed.
Scarce2
Supply is fixed at 21 million bitcoin.
Secure
Transactions are publicly recorded on blockchain.
IBIT FOR BITCOIN
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Access: ease of investing
Unlike direct investing in bitcoin, which requires setting up an account with a crypto exchange, you can buy IBIT in your existing brokerage accounts like any other ETF.
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Convenience: direct bitcoin exposure, without the operational burden
IBIT can help eliminate the logistical challenges, the potentially high trading costs and the tax reporting complexities of holding bitcoin directly.
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Quality: BlackRock & Coinbase integration
A comprehensive integration between BlackRock’s Aladdin® operating platform and Coinbase’s leading crypto exchange designed to help minimize tracking error and expenses.
| iShares Bitcoin Trust (IBIT) | Direct bitcoin on an exchange | Bitcoin futures ETFs | |
|---|---|---|---|
| Convenience† | |||
| Direct bitcoin exposure† |
Source:* BlackRock will waive a portion of the Sponsor’s Fee for the first 12 months commencing on January 11, 2024, so that the fee will be 0.12% of the net asset value of the Trust for the first $5.0 billion of the Trust’s assets. If the fund exceeds $5.0 billion of the Trust’s assets prior to the end of the 12-month period, the Sponsor’s Fee charged on assets over $5.0 billion will be 0.25%. All investors will incur the same Sponsor’s Fee which is the weighted average of those fee rates. After the 12-month waiver period is over, the Sponsor’s Fee will be 0.25%.*
Source:† Can be bought in your existing investing account, Source: ETF.com, 2023, “The New Frontier of Spot Bitcoin ETFs.”
iSHARES FOR BITCOIN
Tap into the world’s largest ETF issuer³ in partnership with Coinbase, the largest cryptocurrency custodian in the world by assets.⁴
01.
TECHNOLOGY & RISK PLATFORM
The comprehensive integration between Coinbase and BlackRock’s Aladdin® which supports $3T in ETFs globally.5
02.
SECURE INFRASTRUCTURE
IBIT has institutional-grade operating standards built by leveraging BlackRock’s platform and expertise.
03.
WHOLE PORTFOLIO INSIGHTS
We share unique thought leadership and insights around bitcoin’s impact on the whole portfolio.
04.
ABILITY TO SCALE
Our wide range of distribution enables ability to scale efficiently.
WHAT IS COINBASE?
Coinbase is the largest cryptocurrency custodian4 in the U.S. by assets. The customized integration between Coinbase and Aladdin® can help bring your clients into the crypto space.
APPEAL TO THE NEXT GENERATION OF CLIENTS WITH IBIT
Investor demand is driving the growth of cryptocurrency. Help grow your practice and aim to meet your clients’ long-term investment goals.
Re-capture held-away assets
There are ~$960bn of held away cryptoassets by HNW & UNHW clients.6 80% of bitcoin holders would prefer to hold through their financial institution.7
Millennial millionaires
83% of millennial millionaires hold crypto.8 In general, millennial investors are more likely to hold crypto than stocks or mutual funds.9
Future-proof your practice
Crypto has grown to a $1T+ asset class in a decade10 - attract to the next generation of investors who may favor crypto over other traditional asset classes.11
Video 01:54
JAY JACOBS: Digital asset adoption has significantly accelerated over the past decade, with profound implications for the future of finance. Bitcoin is the original cryptocurrency to gain global adoption, and has continued to maintain its dominance despite thousands of others coming into existence. You might have noticed Bitcoin make its way into our everyday lives, from Bitcoin ATMs to various merchants accepting Bitcoin as payment, further driving interest in what the future holds for the cryptocurrency. Investors have taken notice as an institutions and individual investors alike have been adopting Bitcoin into their investment portfolios, with some viewing it as a potential store of value and others as a potential game changer in how money moves around the world. But for many investors, holding Bitcoin directly can be complex. That's why we launched IBIT, the iShares Bitcoin Trust, an ETF that provides investors convenient exposure to Bitcoin. Here are three things to know about IBIT.
JAY JACOBS: Access. IBIT enables investors to access Bitcoin within a traditional brokerage account, just like stocks, bonds, and other ETFs.
JAY JACOBS: Convenience. IBIT can help remove operational burdens associated with trading and holding Bitcoin directly, as well as potentially high trading costs and tax reporting complexities.
JAY JACOBS: Quality. IBIT is built by Blackrock, a leading ETF firm with expertise across ETFs and a history of innovation. It is a new day for Bitcoin. Access IBIT through your online brokerage, or discuss with your financial planner to find out how IBIT can fit into your portfolio.
FREQUENTLY ASKED QUESTIONS
Bitcoin is the world’s leading and most widely adopted cryptocurrency and the first form of internet-native money to gain widespread global adoption.12 Bitcoin is considered the first form of internet-native money to gain widespread global adoption. Bitcoin allows for peer-to-peer transactions outside of central intermediaries like banks. This is accomplished through blockchain technology.
As bitcoin has grown in popularity, so have the investment options. One of the ways investors can invest directly in bitcoin is through crypto exchanges. For investors that prefer the convenience of ETFs, bitcoin ETFs such as IBIT provide exposure through a traditional brokerage account.
Bitcoin ETFs are generally accessible on traditional brokerage platforms — the same place investors can also purchase stocks, bonds, and other ETFs.
Bitcoin is the largest and most liquid cryptocurrency and represents over 50% of the $1.5 trillion cryptocurrency market. Bitcoin has maintained its dominance even as the number of cryptocurrencies has grown to over 20,000.12 Bitcoin can be thought of as both a store-of-value asset and a payment asset; for both of these use cases, network size and adoption are critical. As such, bitcoin has a competitive advantage over any would-be challengers, which is why it has not been surpassed.
Digital Assets: An umbrella term that refers to cryptoassets, stablecoins, and financial assets issued as tokens on a blockchain.
Cryptoassets, or cryptocurrencies, or crypto: Digitally-native assets issued on a blockchain, utilizing cryptography, peer-to-peer networking, and a public ledger to regulate the generation of new units, verify the transactions, and secure the records of ownership without reliance on an intermediary.
Bitcoin: The world’s leading and most widely adopted cryptocurrency. It is mined, stored, and transferred on a peer-to-peer network via a public ledger, the blockchain.
Blockchain: The technological foundation of all elements of the ecosystem, including cryptocurrencies, tokenization, and DeFi. A blockchain is a distributed database that is shared amongst the nodes of a network of computers that enables real-time consensus. As a database, a blockchain stores information in digital format, maintaining a secure and decentralized record of transactions. The core innovation of blockchain technology is that it supports the fidelity and security of a record of data and helps generate trust without the need for a trusted third party
While investors should ultimately consult with a financial professional to determine if an investment in bitcoin aligns with their investment goals, there are several factors to consider. Bitcoin has had periods of significant outperformance relative to major asset classes since its inception, but it has come with significant volatility.13 Investors with a higher risk tolerance may be inclined to allocate more of their portfolio to bitcoin. Every investor’s situation and goals are unique, which emphasizes the need to consult a financial professional.
Bitcoin ETFs help alleviate some of the challenges of investing directly in bitcoin, such as storage. Traditional forms of investing directly in bitcoin require deciding where to store the purchased bitcoin, which can be in a crypto wallet or on a crypto exchange. This approach gives the investor certain direct responsibilities in preventing security risks such as theft or loss of private keys, which are essentially passcodes to a crypto wallet. With a bitcoin ETF, investors own shares of the ETF, removing the need to determine where to store their bitcoin, as this is handled by the ETF's custodian. It’s important to note, however, that investing in a bitcoin ETF still involves risk, including possible loss of principal.
Bitcoin, whether held directly or via IBIT, is treated as property and taxed at short-term or long-term capital gains rates when sold, depending on the holding period. IBIT does not issue a K-1.
Investors should consult a tax or financial professional for more information on how they may be impacted by bitcoin tax laws.14
