Exchange-traded funds (ETFs) have transformed how investors access various asset classes, and cryptocurrency is no exception. The Bitwise Bitcoin ETF (ticker: BITB) offers a regulated and convenient method for gaining exposure to Bitcoin, the world's original and largest cryptocurrency by market capitalization. This guide provides a detailed overview of BITB, its structure, benefits, and key considerations for potential investors.
Why Consider the BITB ETF?
BITB provides a bridge between the traditional securities market and the dynamic world of digital assets. It is designed for investors who want to include Bitcoin in their portfolio but prefer to avoid the complexities of direct ownership, such as managing private keys and using cryptocurrency exchanges.
Gain exposure to Bitcoin through a product from an established crypto asset manager. Bitwise brings years of specialized experience to the table, managing this investment with institutional-grade systems for custody, trading, and compliance.
It is crucial to understand that an investment in BITB is not suitable for all investors. It carries a high degree of risk, potential for significant volatility, and could result in a substantial or complete loss of capital. BITB is not a registered investment company under the Investment Company Act of 1940 and is not afforded the protections associated with that act.
Managed by a Dedicated Crypto Expert
Bitwise Asset Management is a leader in the crypto investment space. With a team of over 90 professionals focused exclusively on cryptocurrency, the firm has built a seven-year track record of helping investors navigate this emerging asset class. Choosing BITB means partnering with a specialist whose tools and insights are dedicated to the crypto market.
A Convenient Investment Solution
Bitcoin represents a foundational shift in how value can be stored and transferred globally. By investing in BITB, you are purchasing shares of an ETF that holds physical Bitcoin, effectively providing a familiar and straightforward investment vehicle for accessing its potential growth. This eliminates the technical hurdles of buying, storing, and safeguarding Bitcoin directly.
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Understanding the BITB Fund Structure
The following details provide a snapshot of the fund's operational framework and key partners as of early July 2025.
Fund Overview and Key Details
- Number of Holdings: 1 (Bitcoin)
- Net Assets (AUM): $4,396,063,373
- Shares Outstanding: 73,590,000
- Inception Date: January 10, 2024
- Sponsor: Bitwise Investment Advisers, LLC
Institutional-Grade Service Providers
BITB is built on a foundation of established, reputable institutions, which helps mitigate certain operational risks:
- Administrator & Trust Custodian: The Bank of New York Mellon
- Digital Asset Custodian: Coinbase Custody Trust Company, LLC
- Legal Counsel: Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
- Marketing Agent: Foreside Fund Services, LLC
Fund Holdings and Metrics
The fund's primary holding is Bitcoin, stored securely by its custodians.
- Bitcoin in Trust: 40,029.47 BTC
- Market Value: $4,396,229,926.80
- Bitcoin per Share: 0.000544
Please note that fund holdings are subject to change, and current and future holdings are subject to risk.
Tracking Performance and Market Activity
For investors, understanding how the fund's share price tracks the value of its underlying asset is critical.
Net Asset Value (NAV) vs. Market Price
The Net Asset Value (NAV) represents the per-share value of the fund's underlying assets. The Market Price is what investors actually pay or receive when trading shares on an exchange. A slight difference between the two is normal.
- NAV (07/01/2025): $59.58
- Market Price (07/01/2025): $59.74
- 30-Day Median Bid-Ask Spread: 0.02%
A low bid-ask spread, as seen here, indicates good liquidity, meaning investors can typically buy and sell shares at a price close to the asset's true value.
Historical Performance Snapshot
Past performance is not a guarantee of future results, but it can provide context. Performance data as of June 29, 2025, showed:
NAV Returns:
- 3 Months: 30.66%
- Year-to-Date (YTD): 15.20%
- Since Inception: 15.20%
Market Price Returns:
- 3 Months: 29.47%
- Year-to-Date (YTD): 14.56%
- Since Inception: 14.56%
Returns for periods of one year or less are not annualized. It's important to remember that short-term performance is not a reliable indicator of future results, and investment value will fluctuate.
Frequently Asked Questions (FAQ)
What exactly is the BITB ETF?
The Bitwise Bitcoin ETF (BITB) is an exchange-traded fund that holds physical Bitcoin. Each share of the ETF represents a fractional ownership interest in the Bitcoin held by the trust. It trades on traditional stock exchanges, allowing investors to gain exposure to Bitcoin's price movements without directly owning the cryptocurrency.
How does BITB differ from buying Bitcoin directly?
The primary difference is convenience and security. Buying BITB through a brokerage account avoids the need to set up a crypto wallet, remember private keys, or use a cryptocurrency exchange. The ETF also provides institutional-grade custody solutions for the underlying Bitcoin, which may be preferable for investors concerned about self-custody risks.
What are the main risks associated with investing in BITB?
BITB is subject to the high volatility of Bitcoin's price, which can lead to significant losses. Additionally, it carries risks related to regulatory changes, potential cybersecurity threats at the custodian level, and the fact that it is not protected by the Investment Company Act of 1940. Investors should carefully assess their risk tolerance.
What is the management fee for BITB?
The fund charges a management fee of 0.20%. This fee covers the costs of the sponsor, custody services from Coinbase, and other administrative and operational expenses for the fund.
How can I buy and sell BITB shares?
BITB shares are bought and sold just like any other stock on major stock exchanges. You can place orders through your standard brokerage account using the ticker symbol "BITB."
Does the fund actually hold Bitcoin, or does it use derivatives?
BITB is a spot Bitcoin ETF. This means the fund directly holds physical Bitcoin as its primary asset. It does not achieve its exposure through futures contracts or other derivative products.
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Investing in a Bitcoin ETF like BITB is a significant decision. It offers a modern approach to portfolio diversification but comes with a unique risk profile. By understanding its structure, costs, and how it operates, investors can make a more informed choice about whether this investment vehicle aligns with their financial goals. Always ensure your investment decisions are based on thorough research and consideration of your individual circumstances.