The fee is a share of your balance, so it compounds. As the bitcoin price goes up, your fee goes up with it. See the cost, and compare 14 US spot funds.
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CAGR is the compound annual growth rate. This is your estimate, not a forecast.
IBIT fees in 20 years
$142,332
The fee is a percentage of your balance, so it compounds. As the bitcoin price goes up, your fee goes up with it, from $1,438 in year 1 to $19,508 in year 20.
Casa Premium, $2,100 a year at any balance. The fund fee is more from year 4.
Self-custody with Casa $8,183,269In IBIT $7,783,679Difference $399,590
In self-custody, 1 BTC stays 1 BTC. In IBIT, 1 BTC becomes 0.951 BTC in 20 years, because the fund sells bitcoin to pay its fee.
What self-custody gives you
The table starts with the lowest fee. The cost column uses the example of the calculator, $500,000 for 20 years with 15% growth each year.
| Fund | Fee each year | Custodian | Cost in 20 years | Source |
|---|---|---|---|---|
| Morgan Stanley Bitcoin TrustMSBT | 0.14% | BNY and Coinbase Custody | $80,909 | 10-Q filingChecked |
| Grayscale Bitcoin Mini Trust ETFBTC | 0.15% | Coinbase Custody | $86,570 | 10-Q filingChecked |
| Franklin Bitcoin ETFEZBC | 0.19% | Coinbase Custody | $109,059 | 10-Q filingChecked |
| Bitwise Bitcoin ETFBITB | 0.20% | Coinbase Custody | $114,643 | Bitwise fund pageChecked |
| VanEck Bitcoin ETFHODL | 0.20% | Gemini and Coinbase Custody | $114,643 | VanEck fund pageChecked |
| ARK 21Shares Bitcoin ETFARKB | 0.21% | Coinbase Custody, BitGo and Anchorage | $120,212 | prospectus supplementChecked |
| CoinShares Bitcoin ETFBRRR | 0.25% | Coinbase Custody, BitGo and Komainu | $142,332 | 10-Q filingChecked |
| Invesco Galaxy Bitcoin ETFBTCO | 0.25% | Coinbase Custody | $142,332 | 10-Q filingChecked |
| WisdomTree Bitcoin FundBTCW | 0.25% | Coinbase Custody | $142,332 | 10-Q filingChecked |
| Hashdex Bitcoin ETFDEFI | 0.25% | BitGo | $142,332 | prospectusChecked |
| Fidelity Wise Origin Bitcoin FundFBTC | 0.25% | Fidelity Digital Assets | $142,332 | 10-Q filingChecked |
| iShares Bitcoin Trust ETFIBIT | 0.25% | Coinbase Custody | $142,332 | iShares fund pageChecked |
| Osprey Bitcoin TrustOBTC | 0.49% | Coinbase Custody | $270,013 | prospectusChecked |
| Grayscale Bitcoin Trust ETFGBTC | 1.50% | Coinbase Custody | $720,998 | 10-Q filingChecked |
A fund sells some of its bitcoin to pay its fee. The fee is a percentage of the value of the fund, so the fee in dollars compounds as the price of bitcoin goes up. The calculator adds the fee of each year, with the price growth that you select. 15% each year is an example, not a forecast.
Fees can change. Check the fund before you rely on a fee.
We found no US spot bitcoin ETF that lost bitcoin at its custodian. But the structure of a fund has risks.
The IBIT prospectus says “Individual Shares will not be redeemed by the Trust.” Only authorized participants can exchange shares for bitcoin. They are registered broker-dealers, and they exchange 40,000 shares at a time. Before GBTC became an ETF, the price of its shares was as much as 49% less than the value of its bitcoin.
IBIT prospectusGrayscale 2023 annual reportCoinbase is the custodian for most US spot bitcoin funds. IBIT is one of them. Coinbase says that it holds more than 80% of US bitcoin and ether ETF assets.
Coinbase shareholder letter, Q4 2025The IBIT custodian has crime insurance of up to $320 million. All its customers share this insurance. The prospectus says that this amount “may be substantially lower than the assets of the Trust.” The trust and its sponsor do not insure the bitcoin.
IBIT prospectusA court can decide that the bitcoin is part of the property of a bankrupt custodian. The prospectus says that this can cause “protracted litigation”. It also says that the trust can get back “only a fraction of the Trust’s property.”
IBIT prospectusCompanies that hold bitcoin for customers failed in the past. Some of them were regulated. Prime Trust was a regulated trust company in Nevada. In 2023 it did not pay withdrawals, and it went bankrupt. These are the total losses at exchanges, lenders and custodians.
See all 155 incidents and their sourcesThe amounts are from the time of each incident. Some companies repaid their customers later. The full list shows which companies did.
The Morgan Stanley Bitcoin Trust (MSBT), at 0.14% each year. The next lowest are the Grayscale Bitcoin Mini Trust ETF (BTC), at 0.15%, and the Franklin Bitcoin ETF (EZBC), at 0.19%.
The Grayscale Bitcoin Trust ETF (GBTC), at 1.50% each year. On $500,000 for 20 years, with 15% growth each year, this fee costs $720,998.
No. You own shares of the fund, and a custodian holds the fund's bitcoin. Only authorized participants can exchange shares for bitcoin. They are registered broker-dealers.
A custodian. 12 of the 14 funds in this table use Coinbase Custody, alone or with other custodians. Coinbase says that it holds more than 80% of US bitcoin and ether ETF assets.
On $500,000, a 0.25% fee costs $142,332 in 20 years, if the price of bitcoin grows 15% each year. The fee grows with the price, so most of the cost comes in the last years.
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