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Methodology · ETF deep-dive

IBIT — BlackRock's iShares Bitcoin Trust

IBIT (iShares Bitcoin Trust) is the spot Bitcoin ETF issued by BlackRock — the world's largest asset manager. Since launching in January 2024, IBIT has accumulated over $60B in assets, making it the largest spot Bitcoin ETF and one of the fastest-growing ETFs of any kind in history. For most investors buying spot Bitcoin exposure through a brokerage, IBIT is the default choice.

Why IBIT dominates: BlackRock's institutional distribution muscle (they manage over $10T globally) means IBIT gets first look from every RIA, pension fund, and family office that wants Bitcoin exposure. Combined with the tightest bid-ask spreads in the category and BlackRock's operational reliability, IBIT has become the default institutional Bitcoin ETF — and its flows are the biggest single driver of daily Bitcoin ETF net flows.

AUM and size

IBIT holds ~$60B in assets as of early 2026 — larger than every other spot Bitcoin ETF combined. Grew from zero to $10B in the first three months post-launch (January-April 2024) — the fastest ETF asset growth ever recorded. Continues to see the largest single-day inflows across the spot Bitcoin ETF category.

Fee structure

0.25% annual expense ratio (25 basis points). That's $25 per year per $10,000 invested. Competitive with FBTC (0.25%) and BITB (0.20%); dramatically cheaper than GBTC's legacy 1.50%. Fee is deducted daily from the ETF's NAV — you don't see it as a separate charge.

Bitcoin custody

IBIT's Bitcoin is custodied by Coinbase Custody Trust — the institutional custody arm of Coinbase. Cold storage with multi-signature security. This is significant because Coinbase Custody holds Bitcoin for many major spot ETFs; a Coinbase custody incident would affect the whole category.

Tracking accuracy

IBIT's tracking error vs. Bitcoin is typically under 0.1% on a daily basis — essentially perfect tracking. The tight liquidity (billion+ dollars in daily trading volume) keeps the ETF price extremely close to underlying Bitcoin at all times.

Frequently asked questions

What is IBIT?▼

IBIT is the ticker for the iShares Bitcoin Trust — a spot Bitcoin ETF issued by BlackRock. It holds actual Bitcoin (currently over 500,000 BTC in custody) and its share price tracks Bitcoin's price minus a small annual fee. Investors can buy IBIT through any US brokerage account.

Is IBIT the best spot Bitcoin ETF?▼

For most investors: yes. IBIT has the largest AUM (best liquidity), tightest bid-ask spreads (lowest trading costs), BlackRock's institutional reliability, and competitive 0.25% fee. Alternatives worth considering: FBTC (Fidelity — great if you're already at Fidelity), BITB (Bitwise — 0.20% lowest fee), GBTC (Grayscale — legacy holders only, 1.50% fee is too high for new buyers).

How much Bitcoin does IBIT hold?▼

IBIT holds over 500,000 BTC as of early 2026 — approximately 2.5% of all Bitcoin that will ever exist. This makes IBIT one of the largest single Bitcoin holders in the world, alongside Satoshi Nakamoto's original addresses and MicroStrategy.

Does IBIT pay dividends?▼

No. IBIT doesn't hold any income-producing assets — just Bitcoin. Returns come entirely from Bitcoin price appreciation minus the annual 0.25% fee. If Bitcoin rises 20% in a year, IBIT rises approximately 19.75%. If Bitcoin drops 20%, IBIT drops approximately 20.25%.

Can I hold IBIT in my IRA or 401(k)?▼

Yes for IRAs — every major brokerage supports IBIT in Traditional, Roth, and SEP IRA accounts. Great tax structure for long-term Bitcoin exposure. For 401(k)s: depends on your plan. Some plans have added Bitcoin ETF options starting 2022-2024; most haven't yet. Check your plan's investment menu.

What are the risks of IBIT?▼

Same as Bitcoin: high volatility, potential for large drawdowns. Plus ETF-specific risks: (1) Coinbase custody risk (a Coinbase incident could affect Bitcoin recovery), (2) BlackRock operational risk (extremely low but not zero), (3) 0.25% annual fee compounds over long holding periods (though minor vs. Bitcoin's volatility). No leverage, so downside is capped at Bitcoin's downside.

IBIT vs. buying Bitcoin directly?▼

IBIT: no wallet setup, IRA-compatible, brokerage-taxed like a stock, small annual fee. Direct Bitcoin: full ownership, no counterparty risk on the issuer, requires wallet management, exchange fees on buys. For most people, IBIT is simpler; for maximalists, direct Bitcoin matters. Not mutually exclusive — some hold both.

This page is educational content, not financial advice. Every data figure traces to a primary source (SEC EDGAR filings, company 10-Q / 10-K / 8-K disclosures, or licensed data feeds). See our About page for editorial standards + methodology.

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