It is now easier to invest in cryptocurrency, considering their ETFs have arrived in the market. The first ETF that has made its way is the Spot Bitcoin ETF. It is a familiar investment product for retail and institutional investors. It enables them to follow market trends and make decent profits without holding or storing BTC directly in their accounts.
iShares Bitcoin Trust (IBIT) is one of the major players in the crypto ETF sphere. This article shares details about it including its performance and benefits to investors. Owned by BlackRock, it is being driven by an NAV of $31.26 as of August 07, 2024.
What is iShares Bitcoin Trust?
The iShares Bitcoin Trust (IBIT) is a Delaware statutory trust. It issues shares representing fractional undivided beneficial interests in the Trust’s net assets. It essentially reflects the performance of Bitcoin’s price. iShares Bitcoin Trust is not an investment company under the Investment Company Act 1940. Moreover, there are several risks associated with IBIT, which should be considered before fund allocation.
The IBIT ETF is one of the prominent names across the Bitcoin ETF segment. It has also been recognized as the world’s largest ETF manager with an AUM of $3.5 trillion as of December 31, 2023, per its official website.
IBIT Key Facts
Some key facts about IBIT by BlackRock have been presented below.
- Name – iShares Bitcoin Trust
- Asset Class – IBIT falls under Commodity.
- Ticker – IBIT by BlackRock and BRRNY by Bloomberg Index Ticker.
- Exchange – Nasdaq
- Net Assets of Fund – $18,894,394,255, as of Aug 07, 2024.
- Benchmark Index – CME CF Bitcoin Reference Rate – New York Variant
- Indicative Basket Bitcoin Amount – 22.76, as of Aug 07, 2024.
- Basket Bitcoin Amount – 22.76, as of Aug 07, 2024.
- Distribution Frequency – None
- CUSIP – 46438F101
- 30 Day Avg. Volume – 31,347,055.00, as of Aug 06, 2024.
- Daily Volume – 39,663,758.00, as of Aug 06, 2024.
- Fund Inception – Jan 05, 2024
- Asset Class – Commodity
- Shares Outstanding – 604,440,000, as of Aug 07, 2024.
- Basket Amount – $1,250,373.52, as of Aug 07, 2024.
- Premium/Discount – 0.26, as of Aug 06, 2024.
- Closing Price – 32.34, as of Aug 06, 2024.
- 30 Day Median Bid/Ask Spread – 0.03%, as of Aug 06, 2024.
- Weight – A 100% allocation is to Bitcoin ($BTC) and a 0% weightage is to USD Cash.
- Units – The USD Cash has an equivalent amount of holdings while it is 306,978.53900 for Bitcoin.
Numbers in key finds are true at the time of articulating this piece. They are subject to change and the next report could reflect a higher or a lower number. Use this only as a reference material and not as an investment guidance.
iShares Bitcoin Trust ETF Performance
Mentioning about the iShares Bitcoin Trust ETF performance, it’s 1 Day NAV has changed by -1.00 (-3.09%) as of Aug 07, 2024, and is worth $31.26. It is associated with the investment objective of reflecting the price of Bitcoin according to the benchmark index of CME CF Bitcoin Reference Rate—New York Variant. It is up listed on NASDAQ and has the Bloomberg Index Ticker BRRNY.
| Particulars | Performance |
| Distributions | The fund does not have any distribution. |
| Premium/Discount | Premium for Q1 and Q2 comes to 38 and 37, respectively. Discount for Q1 and Q2 comes to 16 and 26, respectively. |
| Total Returns (Cumulative as of July 31, 2024) | 1 month return is 9.13% |
| Benchmark | YTD = 56.69%; 1 month return = 9.15%; 3 months = 9.85%; 6 months = 53.68% |
| After Tax Pre-Liq | 9.13% |
| After Tax Post-Liq | 5.41% |
Performances quoted here have been derived from the official website of IBIT ETF and do not guarantee future outcomes. It largely depends on factors like volatility, economy, adoption, regulation, and compliance in the US and worldwide. For instance, concerns about inflation affect Bitcoin and hence, IBIT. A dip in those concerns could bring back enthusiasm in the market.
IBIT Holdings
Portfolio Characteristics – A benchmark level of $54,926.37 as of August 07, 2024. Other characteristics like 30-day SEC Yield, Equity Beta (3 years), and Standard Deviation (3 years) are awaited.
The table drawn below shows IBIT holdings as of August 06, 2024.
| Particulars | Holdings |
| Bitcoin (BTC) | 344,010.92170 units at the market value of $19,498,078,066.89 belonging to alternative asset class. |
| USD Cash | 0.15000 units at the market value of $0.15 |
| Other Holdings | Nil |
| % Assets in top 10 holdings | 100% to Bitcoin and 0% to USD Cash |
IBIT ETF Risk Factors
The IBIT ETF is associated with several risk factors. They are similar to every cryptocurrency like economic factors and volatility.
- Extreme volatility causes fluctuations which further affects the value of investment. In the case of cryptocurrencies, it can either mark a massive upswing or bring a significant downfall.
- Risk of loss pertains to the risk of losing funds. While there is no specific extent to which an investor can lose their holdings, it is often asked to be prepared to lose all of it in worst scenarios.
- Other risk factors include inflation concerns, rate cut decisions by the Federal Reserve, global liquidity supply, selling pressure, and general trends across the crypto market.
That doesn’t mean that there are no benefits to IBIT. It does provide secure access to Bitcoin via their brokerage accounts. It offers convenience by eliminating creating a separate account and wallet. Plus, it has the reputation of the largest ETF manager by AUM as of December 31, 2023.
Conclusion
iShares Bitcoin Trust carries forward the legacy of BlackRock by enabling seamless investment in the flagship cryptocurrency. However, it is important to note that returns are subject to crypto market trends. Investors looking to diversify their portfolios can consider starting with iShares Bitcoin Trust.
Disclaimer: The article only provides a comprehensive guide to investing in cryptocurrency through iShares Bitcoin Trust (IBIT) by BlackRock. It is not advice or recommendation in any manner.
For further guidance or details on investing in the iShares Bitcoin Trust (IBIT), click here to visit the IBIT support website