From 24/7 Wall St. · Ryne Mauck · · 1m 20s
BlackRock's Bitcoin ETF Costs $1,250 Less Yearly
BlackRock's Bitcoin ETF charges $1,250 less annually than GBTC for same exposure.
In brief
BlackRock's Bitcoin ETF charges $1,250 less annually than GBTC for same exposure. BlackRock's iShares Bitcoin Trust ETF (IBIT) costs $1,250 less per year than Grayscale Bitcoin Trust (GBTC) for identical Bitcoin holdings. Originally reported by 24/7 Wall St..
ETF Fee Comparison
BlackRock's iShares Bitcoin Trust ETF (IBIT) charges 0.25% sponsor fee versus Grayscale Bitcoin Trust (GBTC)'s 1.5% fee.
Annual Cost Difference
On $100,000 investment, IBIT costs $250 annually versus GBTC's $1,500, creating a $1,250 yearly savings.
Same Bitcoin, Different Fees
Both funds hold identical bitcoin through custodians but charge vastly different sponsor fees for the same exposure.
Fee Impact on Investors
The sponsor fee builds daily and reduces bitcoin exposure without showing on statements, causing gradual value loss.
Recent Performance
Over the past year, both funds dropped 24.49% but GBTC lost 25.54% versus IBIT's 24.68%.
Net Asset Differences
GBTC has $10.26 billion net assets versus IBIT's $65.27 billion with IBIT attracting more inflows.
Tax Implications
Switching between funds in taxable accounts triggers tax on gains, potentially outweighing fee savings.
Retirement Account Advantage
In retirement accounts, switching to IBIT avoids tax consequences and immediately reduces fees.
Cost Basis Consideration
Investors with large pre-conversion gains in GBTC may benefit from keeping shares while directing new money to IBIT.
The headline
BlackRock's iShares Bitcoin Trust ETF (IBIT) costs $1,250 less per year than Grayscale Bitcoin Trust (GBTC) for identical Bitcoin holdings.
