The iShares Bitcoin Trust ETF is not an investment company registered under the Investment Company Act of 1940, and therefore is not subject to the same regulatory requirements as mutual funds or ETFs registered under the Investment Company Act of 1940.
Global
Send payment regardless of location with no currency conversion needed.
Fixed supply2
Supply is fixed at 21 million bitcoin.
Transparent
Transactions are publicly recorded on blockchain.
IBIT FOR BITCOIN
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Access
IBIT enables investors to get exposure to bitcoin through the convenience of an exchange-traded product, helping remove the operational, tax, and custody complexities of holding bitcoin directly.
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Liquidity
IBIT has been the most traded bitcoin ETP since launch, providing investors with potentially lower transaction costs.3
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Integrated technology
IBIT is managed by the world’s largest asset manager, and leverages a multi-year technology integration developed with Coinbase Prime, the world’s largest institutional digital asset custodian.4
Sponsor fee: 0.25%
| iShares Bitcoin Trust ETF (IBIT) | Direct bitcoin on an exchange | Bitcoin futures ETFs | |
|---|---|---|---|
| Convenience | |||
| Direct bitcoin exposure |
Investment comparisons are for illustrative purposes only. To better understand the similarities and differences between investments, including investment objectives, risks, fees and expenses, it is important to read the products' prospectuses.
Video 03:13
WHAT IS BITCOIN?
Bitcoin is the first digital asset 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.
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We've all heard about Bitcoin.
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But what exactly is Bitcoin?
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Let's start at the beginning.
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Around 100,000 years ago.
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Throughout history,
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we've used all kinds of objects
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to help make transactions and store value,
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from seashells
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to shiny metals
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to paper notes.
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That's because the value isn't
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just in the object itself,
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it's in how much we agree
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the object represents.
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So, the object can be many things,
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even, as it turns out,
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a string of digital code.
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The internet changed everything.
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It connected the world,
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changing how we communicate,
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work,
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shop
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and manage finances.
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It also opened the door
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to a new kind of currency and asset.
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Enter Bitcoin,
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a digital currency not governed
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by banks or governments,
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but by its global community of users.
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And that provided new potential benefits.
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Bitcoin exchanges happen
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person-to-person, anywhere in the world,
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in near real time
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and for near zero transaction costs.
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Saving money,
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time
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and opening financial opportunity
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to those without access
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to a banking system.
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Bitcoin
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has a fixed supply of 21 million bitcoins.
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This hard coded rule controls supply,
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purchasing power
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and helps avoid the potential misuse of
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printing more and more currency,
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which can contribute towards inflation.
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All transactions take place on a
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digital ledger called the blockchain.
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It's a digital platform to move value,
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where everyone can see
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every transaction.
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Bitcoin is no longer seen
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as the radical idea it was 15 years ago.
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Over 500 million people around the world
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now use cryptocurrency, with over 50%
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holding or investing in Bitcoin,
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making it the most popular cryptocurrency by far.
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Some use Bitcoin to transfer value
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across borders and for purchases.
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Some see Bitcoin as an investment
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given its limited supply
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and uniqueness relative to other financial assets.
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And for those in certain countries,
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its value goes far deeper,
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potentially offering greater financial autonomy
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by serving as an alternative to local currencies.
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Bitcoin is an emerging
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global monetary alternative.
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Time will tell how far adoption will go,
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but next time you see a seashell
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or shiny metal,
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think about how humans’ idea of “money”
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has evolved throughout history.
iSHARES FOR BITCOIN
Tap into the world’s largest ETP issuer in partnership with Coinbase, the largest cryptocurrency custodian in the world by assets.⁵
01.
TECHNOLOGY & RISK PLATFORM
The comprehensive integration between Coinbase and BlackRock’s Aladdin® platform which supports $3T in ETFs globally.6
02.
ROBUST INFRASTRUCTURE
Operating model supported by long-standing industry relationships with partners and liquidity providers.
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 custodian5 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 ~$960 bn of held-away cryptoassets by HNW & UHNW clients.7 >50% of retail investors would consider changing banks or brokers if they do not have an appropriate digital asset offering.8
Millennial millionaires
83% of millennial millionaires hold crypto.9 In general, millennial investors are more likely to hold crypto than stocks or mutual funds.10
Future-proof your practice
Crypto has grown to a $1T+ asset class in a decade11 - attract to the next generation of investors who may favor crypto over other traditional asset classes.12
FREQUENTLY ASKED QUESTIONS
Bitcoin is the world’s leading and most widely adopted cryptocurrency and the first digital asset to gain widespread global adoption.13Bitcoin 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 ETPs, bitcoin ETPs such as IBIT provide exposure through a traditional brokerage account.
Bitcoin ETPs are generally accessible on traditional brokerage platforms — the same place investors can also purchase stocks, bonds, and other ETPs.
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 20,000.13 Bitcoin can be thought of as a payment asset, with network size and adoption being 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: A distributed digital database that is shared amongst a network of computers that enables consensus. As a database, a blockchain stores information maintaining a secure and decentralized record of transactions. The core innovation of blockchain technology is focused on the fidelity and security of a record of data while minimizing trust amongst participants.
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.14 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 ETPs help alleviate some of the challenges of getting exposure to bitcoin, such as storage. Traditional forms of exposure to 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 ETP, investors own shares of the ETP, removing the need to determine where to store their bitcoin, as this is handled by the ETP's custodian. It’s important to note, however, that investing in a bitcoin ETP 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.15
1 Source: Based on bitcoin’s market cap of $1.2T, which accounts for greater than 50% of the total market cap of all cryptoassets excluding stablecoins. Source: The Tie, as of April 30, 2024.
2 Source: Bitcoin White Paper “Bitcoin: A Peer-to-Peer Electronic Cash System” (2008), CoinGecko, as of June 2023.
3 Source: Bloomberg, as of July 24, 2024. Based on 20-day average trading volumes and 20-day average bid-ask spreads across all ten U.S. spot bitcoin ETPs, since the commencement of trading on January 11, 2024 through July 24, 2024. Liquidity, characterized by strong trading volume and narrow bid-ask spreads, may potentially lower costs for investors by helping to improve price discovery, reduce transaction costs, and increase market stability.
4 Source: BlackRock is the world’s largest asset manager by AUM, managing $10.5T as of March 31, 2024. Coinbase Prime is a full-service prime broker of Coinbase, Inc. which is an affiliate of the iShares Bitcoin Trust ETF custodian with $171B in institutional assets under custody as of March 31, 2024.
5 Source: Source: Coinbase Public Filings, as of Sept. 2023. Coinbase is the world’s largest publicly-traded crypto firm with $114B in assets on the platform.
6 Source: BlackRock is the world’s largest ETF manager by AUM, managing $3.5T in ETF investment vehicles as of Dec. 2023.
7 Source: BlackRock calculations and CoinGecko, as of Dec 31,2023. Determined by subtracting estimated government holdings, institutional holdings, fund-managed AUM, stablecoin assets, and estimated lost cryptoassets from total cryptoasset market capitalization of $1.65T. Held-away assets refer to cryptoassets that are not managed by advisors due to direct holdings or non-advisor affiliated holdings on an exchange.
8 Source: NYDIG “Banking + Bitcoin Survey”, as of Jan. 2021
9 Source: CNBC Millionaire Survey via Spectrem Group, as of Dec. 2021 (n = 750)
10 Source: Investopedia Financial Literacy Survey, as of Feb. 2022 (n = 1000). Percentages indicate the fraction of people surveyed who hold mutual funds, stocks, and/or crypto.
11 Source: Forbes as of 10/30/2023.
12 Source: Investopedia Financial Literacy Survey, as of Feb. 2022 (n = 1000). Percentages indicate the fraction of people surveyed who hold mutual funds, stocks, and/or crypto
13 Source: CoinMarketCap as of 2023. UK Financial Conduct Authority estimates there are over 21,000 cryptoassets, published in “Research Note: Cryptoassets consumer research 2023 (Wave 4)”, June 8, 2023.
14 Source: Past performance does not guarantee future results. Based on calendar year returns of spot bitcoin over the previous 10 years ended December 31, 2023. Source: CF Benchmarks and Bloomberg.
15 Source: IRS.gov
Investing involves a high degree of risk, including possible loss of principal. An investment in the Trust is not suitable for all investors, may be deemed speculative and is not intended as a complete investment program. An investment in Shares should be considered only by persons who can bear the risk of total loss associated with an investment in the Trust.
Investing in digital assets, such as bitcoin, involves significant risks due to their extreme price volatility and the potential for loss, theft, or compromise of private keys. The value of the shares is closely tied to acceptance, industry developments, and governance changes, making them susceptible to market sentiment. Digital assets represent a new and rapidly evolving industry, and the value of the Shares depends on the acceptance of bitcoin. Changes in the governance of a digital asset network may not receive sufficient support from users and miners, which may negatively affect that digital asset network’s ability to grow and respond to challenges. Investing in the Trust comes with risks that could impact the Trust's share value, including large-scale sales by major investors, security threats like breaches and hacking, negative sentiment among speculators, and competition from central bank digital currencies and financial initiatives using blockchain technology. A disruption of the internet or a digital asset network, such as the Bitcoin network, would affect the ability to transfer digital assets, including bitcoin, and, consequently, would impact their value. There can be no assurance that security procedures designed to protect the Trust’s assets will actually work as designed or prove to be successful in safeguarding the Trust’s assets against all possible sources of theft, loss or damage.
The Trust may incur certain extraordinary, non-recurring expenses that are not assumed by the Sponsor.
Shares of the Trust are not deposits or other obligations of or guaranteed by BlackRock, Inc., and its affiliates, and are not insured by the Federal Deposit Insurance Corporation or any other governmental agency. The sponsor of the trust is iShares Delaware Trust Sponsor LLC (the “Sponsor”). BlackRock Investments, LLC ("BRIL"), assists in the promotion of the Trust. The Sponsor and BRIL are affiliates of BlackRock, Inc. Although shares of the iShares Bitcoin Trust may be bought or sold on the secondary market through any brokerage account, shares of the Trust are not redeemable from the Trust except in large, aggregated units called "Baskets". Only registered broker-dealers that become authorized participants by entering into a contract with the sponsor and the trustee of the Trust may purchase or redeem Baskets. The Sponsor is not responsible for losses incurred due to loss, theft, destruction, or compromise of the trust's bitcoin.
Investment comparisons are for illustrative purposes only. To better understand the similarities and differences between investments, including investment objectives, risks, fees and expenses, it is important to read the products' prospectuses.
This material is provided for educational purposes only and does not constitute investment advice. The information contained herein is based on current tax laws, which may change in the future. BlackRock cannot be held responsible for any direct or incidental loss resulting from applying any of the information provided in this publication or from any other source mentioned. The information provided in this material does not constitute any specific legal, tax or accounting advice. Please consult with qualified professionals for this type of advice.
©2024 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK and iSHARES are trademarks of BlackRock, Inc., or its affiliates. All other trademarks are the property of their respective owners.
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