iShares Bitcoin Trust (IBIT)
ETF / Indirect ExposureiShares Bitcoin Trust (IBIT) by BlackRock is the largest Bitcoin ETF by AUM. Over $50B in assets within its first year. Custodied by Coinbase Custody. Offers regulated Bitcoin exposure through standard brokerage accounts.
Quick Verdict
With a Custody Score of 7.6/10, iShares Bitcoin Trust (IBIT) is ranked #2 of 2 among etf / indirect exposure providers. Its strongest category is Regulatory and its weakest is Counterparty Diversification.
Analysis
Score Breakdown
The Custody Score is a weighted average across 8 criteria, each rated 1-10.
| Criterion | Score | Weight | Weighted |
|---|---|---|---|
| Security | 8 | 20% | 1.60 |
| Insurance | 8 | 15% | 1.20 |
| Regulatory | 10 | 15% | 1.50 |
| Fee Transparency | 9 | 10% | 0.90 |
| Track Record | 7 | 15% | 1.05 |
| Withdrawal Flexibility | 3 | 10% | 0.30 |
| Reporting & Audit | 9.5 | 10% | 0.95 |
| Counterparty Diversification | 2 | 5% | 0.10 |
| Total | 100% | 7.6 |
Key Features
- ✓Largest Bitcoin ETF by AUM
- ✓BlackRock — world's largest asset manager
- ✓Coinbase Custody for underlying BTC
- ✓Trades on Nasdaq like a stock
- ✓Available in retirement accounts
- ✓0.25% expense ratio
Fee Breakdown
| Setup Fee | Standard brokerage commission |
| Annual Custody Fee | 0.25% expense ratio |
| Transaction Fee | Brokerage commission (often $0) |
| Withdrawal Fee | Sell shares like any ETF |
| Notes | 0.25% annual expense ratio. No direct Bitcoin withdrawal. |
Security Details
Key Management
Coinbase Custody (for underlying BTC)
Cold Storage
98%+ (via Coinbase)
SOC Compliance
BlackRock SOC + Coinbase SOC 2
Penetration Testing
Yes
Incident History: No incidents
Insurance Coverage
Coverage
Standard ETF/brokerage protections. SIPC for brokerage accounts.
Carrier
SIPC (brokerage level)
Details
Shares are securities protected by SIPC. Underlying Bitcoin custodied by Coinbase.
Regulatory Status
Licenses
- SEC registered investment company
- Nasdaq listed
SEC-regulated ETF. BlackRock is the world's largest asset manager ($10T+ AUM).
Pros & Cons
Pros
- BlackRock — world's most trusted asset manager
- Largest Bitcoin ETF — maximum liquidity
- Available in IRAs and 401(k)s
- 0.25% expense ratio — competitive
- SEC regulated — maximum compliance
Cons
- No direct Bitcoin ownership
- Cannot withdraw actual Bitcoin
- 0.25% annual fee reduces returns
- Dependent on Coinbase custody
- Tracking error possible
How iShares Bitcoin Trust (IBIT) Compares
Top etf / indirect exposure providers ranked by Custody Score.
| Provider | Custody Score | Compare |
|---|---|---|
| Fidelity Wise Origin Bitcoin Fund (FBTC) | 7.9 | Compare → |