BlackRock Bitcoin’s ETF is now the largest Bitcoin fund in the world - and we’ve got everything you need to know about BlackRock and Bitcoin in our guide.
What is BlackRock?
BlackRock is the world's largest asset management firm, headquartered in New York City. Founded in 1988, it provides investment management, risk management, and advisory services to institutional and retail clients globally. With over $10.5 trillion in assets under management as of Q1 2024, BlackRock offers a wide range of products, including mutual funds and exchange-traded funds (ETFs), as well as Bitcoin ETFs.
Read next: What are Bitcoin ETFs?
Does BlackRock have a Bitcoin fund?
Yes. BlackRock offers a Bitcoin ETF product - the iShares Bitcoin Trust.
Read next: How are Bitcoin ETFs taxed?
What is the iShares Bitcoin Trust?
The iShares Bitcoin Trust, also known as IBIT, is a Bitcoin ETF from BlackRock. The product gives newcomers to crypto access to Bitcoin through the convenience of an ETF.
BlackRock teamed up with leading crypto exchange Coinbase in order to launch the BlackRock Bitcoin ETF. Some of the benefits of the BlackRock iShares Bitcoin Trust include:
Access: Unlike direct investment in Bitcoin, which requires setting up an account with a crypto exchange, you can purchase IBIT through your existing brokerage accounts, just like any other ETF.
Convenience: IBIT helps eliminate the logistical challenges, potentially high trading costs, and tax reporting complexities associated with holding Bitcoin directly.
Quality: A comprehensive integration between BlackRock’s Aladdin operating platform and Coinbase’s leading crypto exchange is designed to minimize tracking errors and expenses.
iShares Bitcoin Trust key information:
Net Asset of Fund: $17.3 billion as of July 2024
Exchange: Nasdaq
Ticker: IBIT
Distribution Frequency: None
Fund Launch Date: 5th January 2024
Asset Class: Commodity
How much are BlackRock's Bitcoin holdings?
Wondering how much Bitcoin BlackRock owns? As of July 5, 2024, BlackRock’s iShares Bitcoin Trust holds 307,146 BTC, valued at more than $17 billion at the time of writing.
How to buy BlackRock Bitcoin ETF
The IBIT ETF trades on the Nasdaq, and you can invest in it using the same steps you would follow for trading individual stocks:
Open a brokerage account: You can easily set up a brokerage account online in just a few minutes. You'll need to provide personal information such as your name, contact details, date of birth, Social Security number, and employment details. If you have earned income, you could also buy shares through an individual retirement account (IRA). Make sure to deposit funds into your account before you start trading.
Determine your budget: Before purchasing the iShares Bitcoin ETF, create an investing budget. Since Bitcoin is still a speculative asset, you may want to opt for a low-risk strategy like limiting your investment to no more than 5% of your overall investment budget. Decide whether to invest the allocated amount all at once or to use a dollar-cost averaging strategy in order to mitigate volatility.
DYOR: With the hype surrounding Bitcoin, it's crucial to conduct thorough research and be confident in its long-term investment potential. Although Bitcoin's price has surged by about 140% in the past year, investing based solely on large price swings is not advisable. Bitcoin has a history of significant losses depending on the market conditions, so be prepared to hold your investment for the long term.
Place an order: To place an order, enter the ETF's stock ticker, IBIT. Specify the number of shares you want to buy. If your brokerage allows fractional shares of ETFs, you can specify a dollar amount instead. Decide whether to place a market order, which executes the trade immediately at the current price, or a limit order, which instructs your broker to execute the trade only at a specified price.
