Review
iShares Bitcoin Trust (IBIT)
BlackRock's spot Bitcoin ETF - largest by AUM
Our Verdict
The default choice for most investors. BlackRock is the largest asset manager on the planet, and IBIT became the fastest ETF in history to reach $50B in assets. The liquidity is unmatched - tighter bid-ask spreads mean lower real costs beyond the stated expense ratio. Coinbase Custody holds the Bitcoin, not Fidelity-style self-custody, but BlackRock's institutional heft and regulatory standing make this the closest thing to a "set and forget" Bitcoin allocation. If you want Bitcoin exposure in a brokerage account and don't want to overthink it, this is the one.
What we like
- Largest Bitcoin ETF by AUM (~$55B) with the highest daily trading volume
- Tightest bid-ask spreads of any spot Bitcoin ETF - lower real trading costs
- BlackRock brand brings institutional credibility and regulatory trust
- Coinbase Custody with SOC 1 and SOC 2 audit reports
- 0.25% expense ratio is competitive for the category
- Available at every major brokerage (Fidelity, Schwab, Vanguard, etc.)
What could be better
- Coinbase Custody is a third-party custodian - not self-custody like Fidelity
- Fee waiver expired January 2025 - now full 0.25% expense ratio
- Concentration risk: Coinbase custodies the majority of all spot Bitcoin ETFs
- No on-chain wallet address published (unlike Bitwise)
- BlackRock's size is a double-edged sword - centralization concerns in Bitcoin community
How We Scored This
Community score compiled from Reddit threads, expert reviews, and app store ratings.
IBIT is the most-discussed Bitcoin ETF on Reddit. Consensus: the liquidity and BlackRock brand make it the default choice. Bitcoin maximalists express concern about Coinbase custodial concentration across multiple ETFs.
Traditional investors overwhelming favor IBIT for its liquidity and tracking accuracy. Common take: "IBIT is the VOO of Bitcoin ETFs." Some prefer FBTC for Fidelity self-custody.
Eric Balchunas and other Bloomberg ETF analysts consistently highlight IBIT's record-breaking inflows and superior liquidity. Called it the most successful ETF launch in history by AUM accumulation speed.
Rated favorably for low tracking error and competitive expense ratio. Morningstar notes IBIT's liquidity advantage makes it the best choice for investors who may need to trade in and out.
Score History
Initial review published. Scored using ETF methodology: Custodian & Transparency, Fees, AUM & Liquidity, Issuer Trust.
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