IBIT: The Largest, Cheapest Bitcoin ETF

Last month, Bitcoin finally broke out from the tight trading pattern it held for 7 months on the back of the U.S. election results.

The iShares Trust - iShares Bitcoin ETF (NYSEARCA:IBIT) provides exposure to the largest cryptocurrency in the world. It began trading on the New York Stock Exchange in May 2023 and quickly became one of the most popular ETFs on the market. IBIT tracks the S&P Bitcoin Index, which is designed to measure the performance of Bitcoin. The index is composed of a single futures contract on Bitcoin, currently the March 2024 contract.

As of May 10, 2023, IBIT had about $1.2 billion in assets under management and traded at a price of around $38. This puts the ETF on track to become one of the largest in the U.S., at least among those that are not linked to broad stock market indexes.

The expense ratio for IBIT is 0.47%, which is relatively high for an ETF that simply tracks an index. However, this fee is still much lower than the cost of directly purchasing and storing Bitcoin.

One of the main benefits of IBIT is that it provides a convenient and low-cost way to gain exposure to Bitcoin. The ETF is listed on a major U.S. stock exchange and can be easily traded by any investor with a brokerage account. In addition, the expense ratio of IでもあるいはBIT is much lower than the fees charged by cryptocurrency exchanges.

Another benefit of IBIT is that it is regulated by the U.S. Securities and Exchange Commission (SEC). This provides investors with a level of protection that is not available with unregulated cryptocurrency exchanges.

However, there are also some risks associated with investing in IBIT. One of the biggest risks is that the price of Bitcoin is highly volatile. This means that the value of IBIT could also fluctuate significantly. In addition, IBIT is a new ETF and there is no track record to assess its performance.

Overall, IBIT is a convenient and low-cost way to gain exposure to Bitcoin. However, investors should be aware of the risks involved before investing in this ETF.