Why buy IBIT instead of bitcoin?

IBIT offers a more convenient and regulated Bitcoin investment compared to direct purchase, minimizing risks associated with private key management, high transaction fees, and volatile price swings.

Mar 19, 2025 at 03:33 pm

In the field of cryptocurrency investment, Bitcoin has long dominated, and IBIT (iShares Bitcoin Trust) is gradually emerging as an emerging Bitcoin-related investment tool. So, why in the current investment environment, buying IBIT may be a better choice than investing directly in Bitcoin?

Investment convenience and cost

Direct purchase of Bitcoin requires registration at a cryptocurrency exchange, completing a complex identity verification process, and properly keeping the private key to prevent assets from being stolen. Any error in any link may lead to capital losses. As a trading open-end index fund (ETF), IBIT can be traded on traditional stock exchanges, which is no different from buying and selling stocks. Investors do not need to worry about cryptocurrency wallet management and private key security issues, which lowers investment thresholds and operational risks.

In terms of cost, Bitcoin transaction fees fluctuate violently due to network congestion and can sometimes be astonishingly high. In contrast, IBIT's administrative expenses are relatively fixed and transparent. For example, [specific data] shows that the annual management fee of IBIT is significantly lower than the handling fee cost during the peak period of Bitcoin transactions, which can save investors a lot of money in the long run.

Market risk and stability

Bitcoin price fluctuates like a roller coaster, and its price may rise and fall sharply in a short period of time. This high degree of uncertainty stems from various complex factors such as market supply and demand, regulatory policies, and macroeconomics. For example, due to [specific time], affected by [specific events], the price of Bitcoin plummeted [X]% in one week, and many investors suffered heavy losses. IBIT's price fluctuations are related to Bitcoin, but due to its portfolio and trading mechanism characteristics, it can smooth this extreme fluctuation to a certain extent. Through diversified investment and professional risk management, IBIT provides investors with a relatively more stable investment experience, reducing the potential risk of loss caused by large fluctuations in Bitcoin prices.

Regulatory compliance

Bitcoin is in a regulatory gray area, and countries around the world have different attitudes towards its regulatory requirements and frequent policy changes. This puts Bitcoin investors in constant pressure on policy risks. Once supervision becomes stricter, Bitcoin transactions may be limited and asset value will also be impacted. IBIT is different, it operates within a compliant securities market framework and is subject to strict financial regulation. Taking [a certain region] as an example, IBIT must comply with a series of rules formulated by local securities regulatory agencies, including information disclosure, fund custody and other requirements, which provides investors with additional guarantees to ensure that the investment process is legal and compliant and reduces the potential risks caused by regulatory uncertainty.

To sum up, whether from the perspective of investment convenience, cost control, market risk response and regulatory compliance, IBIT has shown many characteristics that are better than direct investment in Bitcoin. For investors who want to get involved in the Bitcoin investment field, IBIT is a smarter and more robust choice.

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The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research！

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