iShares Bitcoin Trust ETF (NASDAQ: IBIT)

iShares Bitcoin Trust ETF is a Delaware statutory trust formed to hold bitcoin and issue shares that represent a fractional undivided beneficial interest in the net assets of the trust. The trust seeks to reflect the performance of the price of bitcoin before payment of its expenses and liabilities. Each share is designed to give investors exposure to bitcoin through a traditional security that can be bought and sold on a national stock exchange. The trust is sponsored by iShares Delaware Trust Sponsor LLC and advised by BlackRock Fund Advisors as trustee.

The trust does not produce goods or services that generate sales revenue. Its primary purpose is to hold bitcoin and track the cryptocurrency’s market price. Investors gain or lose based on changes in the bitcoin price net of the sponsor’s fee which accrues daily at 0.25 percent of net asset value and is paid to the sponsor.

The trust competes with other exchange traded bitcoin products that aim to give investors exposure to bitcoin through a security. Its competitive advantages include the sponsorship of BlackRock which brings scale brand recognition and deep relationships with market participants. The trust benefits from a large and growing asset base which supports liquidity and tight tracking of bitcoin price. The sponsor believes the basket size of 40000 shares facilitates arbitrage mechanisms that help keep the share price close to net asset value.

The trust’s shares are owned by a broad range of investors including individual retail clients and institutional investors such as hedge funds asset managers and pension funds. Shares are purchased and sold through traditional brokerage accounts and are listed on NASDAQ under the ticker IBIT. Authorized participants which are registered broker dealers facilitate creation and redemption of baskets but they are not considered end investors. No specific customer names are disclosed in the filing.