Bitcoin (BTC 1.11%) just fell to a 52-week low, surpassing the slump that came during the peak of the tariff-induced market sell-off in April 2025.
The iShares Bitcoin Trust ETF (IBIT 0.90%), which is the largest Bitcoin exchange-traded fund (ETF) by net assets, is also just touched a 52-week low.
Here's what you need to know about buying Bitcoin through an ETF versus owning it outright, and why the exchange ratio between the iShares Bitcoin Trust ETF and one bitcoin is a little more complicated than it seems at first glance.
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Approaching cryptocurrency ownership
Bitcoin has a track record of steep plunges and gains that on net have outpaced the S&P 500 (^GSPC 1.30%) during the last three-, five-, and 10-year periods. Simply buying and holding Bitcoin has been the simplest way to filter out the noise and focus on the fundamentals.
Bitcoin's perceived worth comes from its store of value independent of fiat currencies (decentralization), its fixed supply of 21 million coins (which prevents supply inflation and creates scarcity), its security, its transferability, and its divisibility.
Before the days of crypto exchanges like Coinbase Global, the best way to own Bitcoin was through so-called cold storage, which is an offline crypto wallet (cold wallet) where the user is the only one with access to its code (key). Cold storage remains the best way to safely and securely store Bitcoin, especially for folks who aren't interested in trading or exchanging it. However, Coinbase and similar platforms are useful for easily converting and trading fiat and cryptocurrency, as well as tax accounting.
NASDAQ: IBIT
Key Data Points
Bitcoin ETF advantages
ETFs have grown in popularity as the cryptocurrency market has matured, institutional adoption has grown, and some financial institutions and wealth management platforms have begun recommending owning at least a small percentage of crypto in a diversified portfolio. The iShares Bitcoin Trust ETF launched a little more than two years ago. Since then, it has grown to about $67 billion in net assets (it was even higher during Bitcoin's all-time high price in October 2025).
The ETF holds 773,671.37 Bitcoins, which is 3.9% of the total circulating Bitcoin supply and 3.5% of the total Bitcoin that will ever exist. As a spot ETF, the fund's purpose is to mirror the performance of Bitcoin.
The fund has become one of the most popular vehicles to own Bitcoin outside of exchanges and cold storage. Not only is it highly liquid, but it is also operated by the largest asset manager in the world -- BlackRock. Some investors may view the BlackRock umbrella as more credible than older Bitcoin ETFs, like the Grayscale Bitcoin Trust ETF -- which was established more than a decade earlier but only has $14.5 billion in net assets. It also has a steep 1.5% expense ratio compared to just 0.25% for the BlackRock ETF.
ETFs let you own Bitcoin in a brokerage account. Some folks may want to keep their Bitcoin in the same account as stocks, bonds, and money market funds to better manage asset allocation or for simpler accounting.
The iShares Bitcoin Trust ETF also provides a means to own Bitcoin in a retirement account. Although many employers may not offer Bitcoin options in 401(k)s, some folks may have funds from a previous employer's 401(k) that were rolled over into an individual retirement account (IRA). Or have their own IRA or Roth IRA that they've built from scratch. In those cases, buying the iShares Bitcoin Trust ETF is a tax-advantaged way to use retirement savings to get Bitcoin exposure.
Being mindful of Bitcoin dilution
As of the time of Feb. 3, you would need to buy roughly 1,855 shares of the iShares Bitcoin Trust ETF to have the equivalent of one bitcoin. The way to get the ratio is to simply take the price of Bitcoin, which is about $77,000, and divide it by the ETF's share price of about $41.50.
However, because the iShares Bitcoin Trust ETF charges a 0.25% expense ratio, shareholders will incur gradual dilution (about $250 per year per $100,000 owned). So expect the conversion rate of iShares Bitcoin Trust ETF shares to Bitcoin to gradually increase over time.
The best way to buy Bitcoin
Buying the iShares Bitcoin Trust ETF instead of owning Bitcoin on a cryptocurrency exchange like Coinbase or in a cold wallet makes the most sense for investors who want to hold Bitcoin in a brokerage account, especially for those allocating a portfolio of retirement funds to Bitcoin. However, the expense ratio is a legitimate cost to consider, especially when investing large sums.
Another issue is that Bitcoin trades on a 24-hour market, whereas the iShares Bitcoin Trust ETF trades on the Nasdaq Exchange and is therefore limited by its hours of operation. That's not a big deal for long-term investors, especially when investing for an ultra-long-term purpose like retirement. But some folks may still want the added liquidity that comes with being able to buy and sell Bitcoin 24/7 without being limited by exchange operating hours.
