After years of waiting, the Securities and Exchange Commission (SEC) made a cryptocurrency market splash in January 2024, first with a fake announcement resulting from a hack and then with the genuine approval of a string of spot Bitcoin (BTC) exchange-traded funds (ETFs).
Investors seeking to gain exposure to BTC without engaging directly with the world of digital assets were suddenly flooded with options, with each major issuer attempting to entice traders with competitive fee structures.
The approach has so far proven successful, with $188 million flooding into BTC ETFs on Thursday, October 24 alone.
Though any of the available funds can be argued for, most investors would probably find BlackRock’s (NYSE: BLK) iShares Bitcoin Trust ETF (NASDAQ: IBIT) best serves their needs.
Why IBIT might be the best choice for BTC ETF enthusiasts
While much could be said about the reasons for selecting IBIT, the strongest argument boils down to BlackRock’s sheer size and the length of its track record.
Indeed, some of the big reasons for selecting an exchange-traded fund over directly owning cryptocurrencies are related to the safety of engaging with massive and well-established financial institutions overseen by the SEC.
In this regard, BlackRock’s history – it is 36 years old in 2024 – and $11.5 trillion in assets under management (AUM) by the end of 2023 make it a prime choice.
Additionally, IBIT is competitively priced compared to its peers. In fact, at 0.25% per annum, it is fairly middle-of-the-road and more expensive than, for example, Franklin Templeton, Bitwise, and Ark’s offerings and comparable to WisdomTree and Fidelity’s funds.
With more than $26 billion in AUM, IBIT also benefits from its own size, not just BlackRock’s, and has become the biggest such product, all the while boasting substantial institutional backing.
Finally, the iShares BTC fund also benefits from ease of access – a pivotal selling point for BTC ETFs – is further bolstered with a partnership with Coinbase (NASDAQ: COIN).
IBIT offers comparable performance to BTC
By press time on October 25, the ETF had also managed a relatively comparative performance with its underlying asset, as it is 55.67% in the green in the all-time chart and boasts a share price of $38.87.
Simultaneously, Bitcoin is up 58.95% since January 12 – IBIT’s start date – and is, at press time, priced at $68,035.13.
