iShares Bitcoin Trust ETF (IBIT): A Respectable Investment Option for Both New and Experienced Crypto Investors

The most popular spot Bitcoin ETF so far is the iShares Bitcoin Trust ETF (IBIT -2.77%). This fund comes with the mighty financial backing of investment management giant BlackRock and the household-name familiarity of its iShares fund family.

Many investors are interested in adding Bitcoin (CRYPTO: BTC) to their portfolios, but they'd rather not open an account with a crypto-trading service. Fortunately, there are several exchange-traded funds (ETFs) on the market that will let you track Bitcoin prices in a stock-like security.

The most popular spot Bitcoin ETF so far is the iShares Bitcoin Trust ETF (NYSE:IBIT). This fund comes with the financial backing of investment management giant BlackRock (NYSE:BLK) and the household-name familiarity of its iShares fund family.

The iShares fund is a good investment option for both new and experienced crypto investors -- but is it your best Bitcoin option right now? Let's take a look.

The basics of spot Bitcoin ETFs

Spot Bitcoin ETFs opened up the crypto market to several new investor types in January. For example, individual retirement accounts (IRAs) and 401(k) plans rarely come with crypto-trading services. Institutional investors prefer the regulated nature of ETFs over the looser rulebook concerning direct cryptocurrency investments. The new ETFs made Bitcoin investments easily available to accounts with limited asset-type selections.

The new asset class adds some traditional stability and regulatory certainty to the newfangled field of investing in digital assets. So if you wanted to add some Bitcoin exposure to your retirement portfolio, the ETFs made that idea readily available.

How the iShares ETF stands out

The iShares Bitcoin ETF comes with a few qualities that investors may find appealing:

It isn't always the clear leader in every field. The ARK 21Shares Bitcoin ETF and the Bitwise Bitcoin ETF offer slightly lower fee ratios, for instance. The Vanguard fund family is arguably even more reputable than iShares, but I don't expect John Bogle's firm to enter the crypto market anytime soon.

Some may prefer the ever-so-slightly lower fees found elsewhere, or the brand value of famed growth investor Cathie Wood standing behind the ARK 21Shares option, or the unique Bitwise strategy of investing some of its management fees in Bitcoin developer organizations.

But in general, the iShares fund is the clear leader of this field in terms of investor interest, and there's nothing wrong with that. It's a robust ETF under management of a well-respected firm, and the fees are within a rounding error of Bitwise's optimal 0.20% rate.

Alternative Bitcoin investment strategies

You could always bite the bullet and buy Bitcoin directly. That may mean opening a new account with an unfamiliar financial institution, sharing financial data such as your bank account number (to fund the new account), and learning the ins and outs of a different trading system. Moreover, crypto exchanges such as Coinbase (NASDAQ:COIN) and Robinhood (NASDAQ:HOOD) add fees to their Bitcoin purchases, either directly or in the form of a small adjustment to the cryptocurrency price. ETF trades are usually fee-free nowadays.

Still, you might prefer the true ownership of actually holding the digital currency. Bitcoin might eventually become a useful medium for everyday transactions, and an ETF won't help you participate in that function. And of course, even giants may fall: BlackRock isn't likely to go bankrupt soon, but I can't argue that the risk is exactly zero. Those buy-in fees I mentioned for direct Bitcoin buys may look unwelcome up front, but they work out to no more than 5 years' worth of annual ETF fees.

You could always take a less direct route into the crypto market. Coinbase and Robinhood are leading crypto exchanges and also interesting stocks to own in their own right. Enterprise software developer MicroStrategy (NASDAQ:MSTR) has essentially transformed itself into a Bitcoin fund of sorts, investing most of its cash in the cryptocurrency and adding more over time. Bitcoin miners such as Marathon Digital Holdings (NASDAQ:MARA) and Riot Platforms (NASDAQ:RIOT) also rely on Bitcoin's price in the long run. In short, there are many ways to add some Bitcoin exposure to your stock portfolio, each with a distinct level of market risk and potential rewards.

Should you buy, sell, or hold the iShares Bitcoin ETF?

If you have read this far, I assume you have some interest in Bitcoin investments. If so, the iShares Bitcoin ETF offers a comfortable path to indirect Bitcoin ownership, with modest fees and a robust financial platform.

전반적으로 요즘 모든 투자자는 비트코인과 기타 암호화폐에 어느 정도 노출되어야 한다고 생각합니다. 구식 은행 시스템, 결제 서비스 등에서 디지털 혁명의 요동침이 느껴집니다. 게임 속에서 스킨십도 없이 옆에서 그 바다의 변화를 지켜보는 것은 부끄러운 일일 것입니다.

iShares ETF는 제가 개인적으로 가장 좋아하는 ETF는 아니지만 확실히 추가 조사가 필요한 짧은 펀드 목록에 있습니다. 이미 보유하고 있다면 iShares Bitcoin ETF는 장기적으로 강력한 보유 수단입니다. 그렇지 않다면

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