IBIT:CA: Bitcoin Exposure For Non-Crypto Investors

Summary IBIT:CA offers convenient, cost-effective Bitcoin exposure for traditional investors through BlackRock’s trusted ETF structure, bypassing crypto exchange complexities. Bitcoin’s strong historical performance and growing mainstream adoption make it a compelling asset for diversification, hedging, or price participation. IBIT:CA stands out with a low 0.32% management fee, matching Fidelity and undercutting other Canadian Bitcoin ETFs on cost. The ETF structure reduces custodial risk, but investors must accept Bitcoin’s high volatility and regulatory risks; prudent allocation is advised. Author’s Note: All figures listed in Canadian currency unless otherwise noted. Investment Thesis The iShares Bitcoin ETF ( IBIT:CA ) offers a convenient and cost-effective means of gaining exposure to Bitcoin ( BTC-USD ) through BlackRock’s family of iShares ETFs. In eight of the past eleven calendar years to 2024, bitcoin was the best performing asset by asset class. Whether for diversification, hedging or price exposure, bitcoin has seen its ownership base expand from crypto-enthusiasts to institutional and traditional investors. Traditional investors seeking exposure to bitcoin for participation in cryptocurrency may have found bitcoin to be inaccessible, inconvenient or intimidating due to the complex nature of coin exchanges or crypto exchange platforms. IBIT:CA offers the familiarity of an ETF format presented by BlackRock, one of the world’s largest asset managers. This product is an ideal vehicle for investors who want exposure to Bitcoin without having to interface with the complexities of owning it directly through a crypto exchange. Fund Profile Launched in Canada in January 2025, the iShares Bitcoin ETF has net assets of approximately $215MM on 5.1 million units outstanding. This Canadian debut follows the January 2024 listing of iShares Bitcoin Trust ( IBIT ) on the NASDAQ. This U.S.-listed fund has grown to $70B in assets and has consistently been the highest volume bitcoin ETF. Through a custodial partnership with Coinbase, IBIT seeks to reflect the performance of the price of bitcoin. IBIT:CA trades on the Cboe Global Stock Exchange, operating in Canada since 2015. This stock exchange is responsible for approximately 15% of listed security trading volume in Canada and specializes in ETFs, with over 1,200 funds trading on their ETF Market Canada. Beyond a small cash contingency of 0.08% to facilitate liquidity, Canadian-listed IBIT:CA invests substantially all of its holdings in the underlying U.S.-listed IBIT. This ETF can be owned in Canadian funds ((IBIT:CA)) or in U.S. currency ( IBIT.U:CA ) iShares Bitcoin ETF – USD Units. IBIT:CA has a management fee of 0.32%, equating to $32 in fees for every $10,000 invested. With no dividends and a strategy of long-term holding, the fund does not have any distributions. Background Bitcoin is not a productive asset in and of itself, therefore it’s helpful to think about cryptocurrency as an asset class to gain exposure to, rather than a vehicle to generate wealth. It is with this risk management lens that I consider the role of bitcoin in my portfolio. In previous coverage of MicroStrategy Incorporated ( MSTR ) “MicroStrategy Incorporated: Get Bitcoin Exposure Without Leaving The Nasdaq”, I wrote: If you are a traditional investor like me who holds a portfolio of publicly traded equities in a brokerage account, you may have been sitting on the sidelines as bitcoin makes fresh headlines for breaking new valuation records. As a long-term buy-and-hold investor, I don’t spend a lot of time chasing fads or making investment decisions based on the “fear of missing out.” I do however spend time thinking about asset allocation in my portfolio and protection against inflation. The iShares Bitcoin ETF allows less adventurous investors to add bitcoin to their portfolios without leaving their brokerage accounts. My preference is to have my securities all in one place to optimize portfolio management. With this in mind, I have been reluctant to deal with the hassle of opening an account on a cryptocurrency trading platform. I prefer the simplicity of a one-stop-shop discount brokerage platform and am uninterested in transferring funds, reviewing a new trading commission structure and registering with another platform. The familiarity with the ETF structure and the iShares suite of products that can be purchased through one’s existing brokerage makes IBIT:CA convenient and accessible. My own brokerage account has an integrated cryptocurrency trading platform, so I can manage my modest bitcoin exposure within the context of my larger portfolio. This platform reflects my “core and explore” style of investing, whereby I hold a core portfolio of diversified equities with some modest exposure to bitcoin and other alternatives. In recent years, investor confidence in crypto exchanges was shaken through the high-profile fraud case of Sam Bankman-Fried, founder of FTX. A 2024 report from the Pew Research Center found that 63% said they had little to no confidence that “current ways to invest in, trade or use cryptocurrencies are reliable and safe”. For many investors, including myself, the opportunity to bypass cryptocurrency exchanges by owning bitcoin through exchange-listed wrappers on local exchanges offers additional peace of mind and removes a barrier to participation. Does Bitcoin Belong in Your Portfolio? I am not a bitcoin evangelist and I am not prepared to articulate a bull case for the cryptocurrency. It is worth noting, however, that as an asset class, bitcoin has delivered impressive long-term performance, far outpacing equity market indices. Performance of Bitcoin vs the S&P500 (SA) While I do not advocate chasing past performance, I do think that there is room for multiple asset classes to be represented within a diversified portfolio. To this end, it may be worth evaluating whether some exposure to bitcoin makes sense in your own portfolio. Bitcoin has become increasingly mainstream and institutional. With a $2.1T market cap , pension funds, hedge funds and other institutional investors have been drawn to bitcoin for the increased liquidity, transparency and exposure to new asset classes. A 2025 digital assets survey from EY-Parthenon research indicated that 85% of respondents increased allocations to digital assets and digital assets-related products in 2024. This survey also reports that firms have been increasing their weightings in digital assets, with 59% of respondents planning to allocate over 5% of their assets under management to cryptocurrencies. 2025Institutional Investor Digital Assets Survey (EY Digital Asset Survey 2025) The growing suite of products for retail investors also speaks to bitcoin’s shift toward mainstream investing. This growth has taken off following the January, 2024 decision from the SEC to greenlight the creation of U.S.-listed ETFs tracking the spot price of bitcoin. Retail investors have wasted no time in moving into these new funds. According to RBC Direct Investing : Inflows to U.S. Bitcoin ETFs, which have attracted over $6 billion of inflows in May, equating to 7% of all ETF inflows this month. It is a notable haul and propels IBIT to the 5th highest amount of YTD ETF inflows; joining an impressive list led by beta-stalwarts VOO, SGOV, VTI and SPLG. Peer ETF Comparison With a singular underlying asset and no meaningful portfolio composition to differentiate bitcoin ETFs, these funds compete on fees. Bitcoin ETFs have been available in Canada since February 2021, when the Purpose Bitcoin ETF ( BTCC:CA ) debuted. The Purpose Bitcoin ETF has $3B in assets offering ample liquidity, however it has a relatively high 1.31% MER with a 1% management fee. The first mover advantage Purpose had in this space allowed it to charge a higher fee. The CI Galaxy Bitcoin ETF C$ Unhedged Series Units ( BTCX.B:CA ), has approximately $1.3B in assets. This ETF charges an MER of 0.69% with a management fee of 0.40%. The Fidelity Advantage Bitcoin ETF ( FBTC:CA ) is the third-largest provider in Canada with $1.2B in assets. Responding to new market entrants like iShares, Fidelity recently lowered its management fee from 0.40% to 0.32%. ETF Assets Management Fee iShares Bitcoin ETF ((IBIT:CA)) $215MM 0.32% Purpose Bitcoin ETF ((BTCC:CA)) $3.0B 1.00% CI Galaxy Bitcoin ETF C$ Unhedged Series Units ((BTCX.B:CA)) $1.3B 0.40% Fidelity Advantage Bitcoin ETF ((FBTC:CA)) $1.2B 0.32% Compared to its more established peers, the iShares Bitcoin ETF ties with Fidelity in offering relative value with its management fee of 0.32%. IBIT:CA hasn’t been trading long enough to report its MER. Risk Analysis This ETF structure seeks to mitigate the custodial risks associated with owning bitcoin directly through a crypto exchange platform. The inherent risks of the underlying cryptocurrency asset are still reflected in IBIT:CA, however. Bitcoin is highly volatile. While bitcoin has clocked double-digit returns in eight of the past eleven calendar years, when BTC corrects, it has done so in dramatic fashion. In 2018, bitcoin lost 78% of its value and again in 2022, it gave up gains to close 64% down. Bitcoin performance vs other asset classes (Blackrock iShares) Beyond volatility, IBIT:CA is highly concentrated with the ETF comprised of a singular asset. Prudent investors may consider a modest position in IBIT:CA as a complement to a diversified portfolio of stocks. Importantly, iShares rates the ETF’s risk as “high”, the highest rating on its five point risk scale. Investors should also consider regulatory risks before owning cryptocurrencies. The pro-crypto stance taken by the Trump administration in the U.S. has increasingly led to a regulatory environment seen by the industry as more constructive for product innovation. In other jurisdictions, cryptocurrencies are viewed less favourably. Crypto Regulation by Country (Coinclub) Conclusion The iShares Bitcoin ETF offers an accessible and convenient option for Canadian investors seeking exposure to bitcoin. The ETF structure allows investors to gain exposure to bitcoin without having to engage with a cryptocurrency exchange and to own it through a familiar institutional name, BlackRock. With one of the lowest management fees in the sector, IBIT:CA offers better value than larger incumbent bitcoin ETFs. With little to differentiate these products, the lower fee is an important consideration. For traditional investors curious about cryptocurrency, this is an easy way to test the waters.

Source: Seeking Alpha