IBIT is a grantor trust that holds bitcoin directly and aims to track the price of bitcoin, using a reference rate to value its holdings. It launched in January 2024, when US regulators approved spot bitcoin ETFs. Bitcoin is a highly volatile asset that has had declines of 50 percent or more several times, produces no cash flows and is affected by regulation, market sentiment and liquidity. The fund gives exposure through a brokerage account, without the need to hold the asset directly.
