Bitcoin is the world’s leading and most widely adopted cryptocurrency and the first digital asset to gain widespread global adoption. Bitcoin allows for peer-to-peer transactions outside of central intermediaries like banks. This is accomplished through blockchain technology.
WHAT IS BITCOIN
Bitcoin is the world’s most recognized and widely adopted cryptocurrency1, and many investors want to learn more. Watch to learn the basics of Bitcoin, how it works and understand it's significance in our world today.
We've all heard about Bitcoin. But what exactly is Bitcoin?
Let's start at the beginning.
Around 100,000 years ago. Throughout history, we've used all kinds of objects to help make transactions and store value, from seashells to shiny metals to paper notes.
That's because the value isn't just in the object itself, it's in how much we agree the object represents.
So, the object can be many things, even, as it turns out, a string of digital code.
The internet changed everything. It connected the world, changing how we communicate, work, shop and manage finances. It also opened the door to a new kind of currency and asset.
Enter Bitcoin, a digital currency not governed by banks or governments, but by its global community of users. And that provided new potential benefits.
Bitcoin exchanges happen person-to-person, anywhere in the world, in near real time and for near zero transaction costs. Saving money, time and opening financial opportunity to those without access to a banking system.
Bitcoin has a fixed supply of 21 million bitcoins. This hard coded rule controls supply, purchasing power and helps avoid the potential misuse of printing more and more currency, which can contribute towards inflation.
All transactions take place on a digital ledger called the blockchain. It's a digital platform to move value, where everyone can see every transaction.
Bitcoin is no longer seen as the radical idea it was 15 years ago. Over 500 million people around the world now use cryptocurrency, with over 50% holding or investing in Bitcoin, making it the most popular cryptocurrency by far.
Some use Bitcoin to transfer value across borders and for purchases. Some see Bitcoin as an investment given its limited supply and uniqueness relative to other financial assets.
And for those in certain countries, its value goes far deeper, potentially offering greater financial autonomy by serving as an alternative to local currencies.
Bitcoin is an emerging global monetary alternative. Time will tell how far adoption will go, but next time you see a seashell or shiny metal, think about how humans’ idea of “money” has evolved throughout history.
Disclosure
Investing involves a high degree of risk, including possible loss of principal. An investment in the ETF is not suitable for all investors, may be deemed speculative and is not intended as a complete investment program. An investment in the ETF should be considered only by persons who can bear the risk of total loss associated with an investment in the ETF.
Investing in digital assets involves significant risks due to their price volatility and the potential for loss, theft, or compromise of private keys. The value of the ETF is closely tied to acceptance, industry developments, and governance changes, making them susceptible to market sentiment. Digital assets represent a new and rapidly evolving industry, and the value of the units depend on their acceptance. Changes in the governance of a digital asset network may not receive sufficient support from users and miners, which may negatively affect that digital asset network’s ability to grow and respond to challenges. Investing in the ETF comes with risks that could impact the ETF’s value, including largescale sales by major investors, security threats like breaches and hacking, negative sentiment among speculators, and competition from central bank digital currencies and financial initiatives using blockchain technology. A disruption of the internet or a digital asset network could affect the ability to transfer digital assets and, consequently, could impact their value.
This material is provided for educational purposes only and does not constitute investment advice. The information provided in this material does not constitute any specific legal, tax or accounting advice. Please consult with qualified professionals for this type of advice.
iShares® ETFs are managed by BlackRock Asset Management Canada Limited. Commissions, trailing commissions, management fees and expenses all may be associated with investing in iShares ETFs. Please read the relevant prospectus before investing. The funds are not guaranteed, their values change frequently, and past performance may not be repeated. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional.
© 2025 BlackRock, Inc. or its affiliates. All Rights Reserved. BLACKROCK and iSHARES are trademarks of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
iCRMH0125C/S-4141031
THE CASE FOR IBIT
ACCESS
IBIT enables investors to access bitcoin through the convenience of an exchange-traded fund, helping remove the operational and custody complexities of holding bitcoin directly.
INTEGRATED TECHNOLOGY
IBIT is managed by the world’s largest asset manager, and leverages a multi-year technology integration developed with Coinbase Prime, the world’s largest institutional digital asset custodian.2
LOW-COST
Low Annual Management Fee of 0.32% compared to the industry medium fee of 1.00%3
FREQUENTLY ASKED QUESTIONS
As bitcoin has grown in popularity, so have the investment options. One of the ways investors can invest directly in bitcoin is through crypto exchanges. For investors who prefer the convenience of exchange-traded products (ETFs), bitcoin ETFs such as IBIT provide exposure through a traditional brokerage account.
Bitcoin exchange-traded products are generally accessible on traditional brokerage platforms — the same place investors can also purchase stocks, bonds, and ETFs.
Bitcoin is the largest and most liquid cryptocurrency and represents over 50% of the $1.5 trillion cryptocurrency market. Bitcoin has maintained its dominance even as the number of cryptocurrencies has grown to over 20,000.4 Bitcoin can be thought of as a payment asset, with network size and adoption being critical. As such, bitcoin has a competitive advantage over any would-be challengers, which is why it has not been surpassed.
While investors should ultimately consult with a financial professional to determine if an investment in bitcoin aligns with their investment goals, there are several factors to consider. Bitcoin has had periods of significant outperformance relative to major asset classes since its inception, but it has come with significant volatility.5 Investors with a higher risk tolerance may be inclined to allocate more of their portfolio to bitcoin. Every investor’s situation and goals are unique, which emphasizes the need to consult a financial professional.
Bitcoin exchange-traded funds (ETFs) help alleviate some of the challenges of investing directly in bitcoin, such as storage. Traditional forms of investing directly in bitcoin require deciding where to store the purchased bitcoin, which can be in a crypto wallet or on a crypto exchange. This approach gives the investor certain direct responsibilities in preventing security risks such as theft or loss of private keys, which are essentially passcodes to a crypto wallet. With a bitcoin ETF, investors own shares of the ETF, removing the need to determine where to store their bitcoin, as this is handled by the ETF's custodian. It's important to note, however, that investing in a bitcoin ETF still involves a high degree of risk, including possible loss of principal.
SEE THE FUNDS. INVEST WITH CONFIDENCE
Review key fund information and know your objectives before you invest