BlackRock’s iShares Bitcoin Trust (IBIT) is now the largest holder of bitcoin in Bitcoin ETFs, surpassing the previous top holder Grayscale’s Bitcoin Trust (GBTC). BlackRock now holds 288,670 bitcoins in IBIT, with a value of $19,686,576,236.
BlackRock states, “IBIT can help eliminate the logistical challenges, the potentially high trading costs and the tax reporting complexities of holding bitcoin directly. A comprehensive integration between BlackRock’s Aladdin® operating platform and Coinbase’s leading crypto exchange [is] designed to help minimize tracking error and expenses.”
BlackRock’s sponsor fee: 0.25%, waived to 0.12% for 12 months up to $5bn in assets.
Grayscale advertises their Bitcoin Trust as “…one of the first securities solely and passively invested in Bitcoin (“BTC”) that enables investors to gain exposure to BTC in the form of a security while avoiding the challenges of buying, storing, and safekeeping BTC, directly. Shares (based on BTC per Share) are designed to reflect the value of BTC held by the Trust, determined by reference to the Index Price, less the Trust’s expenses and other liabilities.”
GBTC charges an annual management fee of 1.50%, which includes all of the costs associated with administration and safekeeping of the underlying Bitcoin. There are no other fees.
It will be interesting to see which of the top Bitcoin ETFs come out as the top holders of Bitcoin while offering the best annual fees for customers to grow their Bitcoin ETF investment.
