⚖️ GBTC vs IBIT Comparison · Free & No Signup

GBTC vs IBIT: Six Times the Fee for the Same Asset

Grayscale charges 1.50%. BlackRock charges 0.25%. Both hold spot bitcoin. That is one of the widest fee gaps between two funds holding an identical asset anywhere in the ETF market, and there is a specific reason billions have stayed put.

💰 IBIT is cheaper 🔬 Compare top 10 holdings → 💡 Plain-English verdict

🤝 BFF Take

IBIT Costs a Sixth as Much; GBTC Holders Face a Tax Bill to Move

GBTC (Grayscale Bitcoin Trust) charges 1.50%. IBIT (iShares Bitcoin Trust) charges 0.25%. The bitcoin behind each share is the same asset held by a qualified custodian, so the 1.25 percentage point gap buys nothing in exposure. On $10,000 that is $125 a year more, and it compounds against the position for as long as it is held. GBTC carries that fee because it spent years as the only regulated US bitcoin vehicle, converting to an ETF in January 2024 when spot funds were approved. Money has been leaving steadily since. What keeps roughly $14.9B in place is not competitiveness: many holders bought at much lower prices, so selling GBTC to buy IBIT is a taxable disposition that can trigger a capital gains bill larger than years of the fee difference. That calculation is specific to each holder's cost basis and account type, and it does not apply at all inside an IRA or to new money. For a fresh purchase the comparison is not close.

📋 Quick Takeaways

💸GBTC costs 1.50% against IBIT at 0.25%, a difference of $125 a year per $10,000 for identical exposure

🧾Switching in a taxable account is a sale, so a long-held GBTC position can owe capital gains that outweigh the fee saving

🔄Inside an IRA there is no tax consequence to switching, which removes the main reason to stay

📊 Data-Based Take: IBIT has the lower fee

Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.

Both funds trade commission-free at every major brokerage. How the major brokerages compare →

✓ Reviewed by a CFA® Charterholder · Data as of Aug 1, 2026 · Educational only, not financial advice

GBTC

Grayscale Bitcoin Trust

Expense Ratio

1.50%

1-Year Return

—

AUM

$14.9B

Holdings

IBIT

iShares Bitcoin Trust ETF

Expense Ratio

0.25% ✓

1-Year Return

-42.9%

AUM

$43.2B

Holdings

📋 GBTC vs IBIT — Key Facts Side by Side

Metric	GBTC	IBIT
Fund Name	Grayscale Bitcoin Trust	iShares Bitcoin Trust ETF
Issuer	Grayscale	BlackRock
Tracks Index	Spot bitcoin	Spot bitcoin
Expense Ratio	1.50%	0.25% ✓
Cost per $10K/yr	$150.00	$25.00
AUM	$14.9B	$43.2B
Holdings	1	1
Inception	2024	2024
1-Year Return	—	-42.85%
3-Year Return	—	—
5-Year Return	—	—
Holdings Overlap	See holdings overlap →
Avg Bid-Ask Spread	0.03%	0.01%

Expense ratio, AUM, and returns updated Aug 1, 2026 from ETF BFF database. Returns are annualised. Not investment advice.

🎯 Which Fund Fits Which Investor?

Often fits investors who...

GBTC

already use Grayscale and prefer staying within one fund family

Often fits investors who...

IBIT

want the lowest fees: saves ~$125/yr per $10K vs GBTC
already use BlackRock and prefer staying within one fund family

💰 What the Fee Difference Actually Costs

Adjust the numbers for your situation. This models each fund's expense ratio compounding against your balance over time.

Investment amount$ Years held Expected annual return%

Assumes a constant annual return reinvested, with each fund's expense ratio deducted yearly. Illustrative only; actual returns vary. Past performance does not guarantee future results.

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❓ GBTC vs IBIT — Frequently Asked Questions

Why is GBTC so expensive compared to IBIT?

History rather than anything about the product. Grayscale ran GBTC as a closed-end trust for years when it was effectively the only regulated way to hold bitcoin in a brokerage account, and it priced accordingly. When it converted to an ETF in January 2024 alongside the new spot funds, it kept a 1.50% fee into a market where competitors launched at 0.20% to 0.25%. The bitcoin exposure is the same; the fee reflects the era the fund came from.

Should I switch from GBTC to IBIT?

The answer depends on your account type and cost basis rather than on the funds. Inside an IRA there is no tax consequence to switching, so the 1.25 percentage point fee saving applies cleanly. In a taxable account, selling GBTC is a disposition: a holder who bought at much lower prices could owe capital gains exceeding several years of fee savings. Work out the tax cost against the annual saving for your specific position, and confirm with a tax professional. This is general information, not advice.

How much does the GBTC fee actually cost?

At 1.50% against IBIT's 0.25%, the gap is 1.25 percentage points, or $125 a year on a $10,000 position and $1,250 a year on $100,000. Because the trust pays its fee by selling bitcoin, the cost shows up as fewer bitcoin backing each share over time rather than as a charge on your statement. Over a decade of holding, the difference compounds into a materially smaller bitcoin position.

Do GBTC and IBIT hold the same thing?

Yes, in substance. Both are spot bitcoin ETFs holding real bitcoin with a qualified custodian, both are grantor trusts, and both track bitcoin's price directly. Neither uses futures. The exposure a shareholder gets is the same asset, which is precisely why the fee gap draws attention: it is not paying for a different or better strategy.

Is GBTC still worth holding?

For new money, the fee is very difficult to justify when identical exposure is available at 0.20% to 0.25%. For existing holders with large unrealized gains in taxable accounts, staying can be the cheaper path once the tax bill on switching is counted, which is why roughly $14.9B remains. Those are two different questions with two different answers, and the second one turns entirely on individual cost basis.

New to ETF investing? See answers to the most common ETF questions →

📄 GBTC & IBIT Fact Sheets

GBTC Fact Sheet→ IBIT Fact Sheet→

ℹ️ Data shown is for educational purposes and may not reflect the most current figures. Returns are trailing price-based and exclude dividend reinvestment. Past performance does not guarantee future results. ETF BFF is not a licensed financial advisor — this is not personalized financial advice.