IBIT vs GBTC
GBTC represents the legacy era of Bitcoin investing. Launched in 2013 by Grayscale as a private trust, it was for years the only way to hold Bitcoin in a brokerage account. When spot Bitcoin ETFs were approved in January 2024, GBTC converted into an ETF rather than launching fresh.
IBIT, by contrast, was designed as an ETF from day one. This comparison is less about Bitcoin exposure — both hold the same asset — and more about how history, structure, and fees shape outcomes for investors today.
Side-by-Side Comparison
| Metric | IBIT | GBTC |
|---|---|---|
| Fund Name | iShares Bitcoin Trust | Grayscale Bitcoin Trust |
| Issuer | BlackRock | Grayscale |
| Expense Ratio | 0.25% | 1.50% |
| BTC per Share | ... | ... |
| Shares per 1 BTC | ... | ... |
| Launch Date | Jan 11, 2024 | Jan 11, 2024 |
| Custodian | Coinbase Custody | Coinbase Custody |
| Options Available | Yes | Yes |
Key Differences
Unlike other matchups in this section, the differences between IBIT and GBTC are stark.
The fee gap is the most obvious. GBTC charges 1.50% annually — six times IBIT's expense ratio. On a $50,000 investment, that's $750 per year versus $125. The reason GBTC can maintain higher fees lies in its history: many holders accumulated shares years ago at much lower prices, and leaving is expensive.
That leads to the tax trap. For long-time GBTC holders with large unrealized gains, selling to switch into a cheaper ETF triggers capital gains taxes. If you bought GBTC at $10 and it's trading at $60, selling triggers tax on a $50 gain per share. Often, the tax bill outweighs years of fee savings. This dynamic is why GBTC retains significant assets despite being the most expensive option — not because investors prefer it, but because leaving is costly.
Grayscale's response was the creation of the Bitcoin Mini Trust (ticker: BTC), a low-fee spin-off. Grayscale distributed Mini Trust shares to existing GBTC holders, giving them a way to reduce ongoing fees without forcing a taxable sale. The Mini Trust charges 0.15% — a fraction of GBTC's fee.
Fund flows tell part of the story too. Since conversion, GBTC has experienced significant outflows as cost-sensitive investors migrate to cheaper alternatives. Even so, its decade-long head start means it remains one of the larger Bitcoin ETFs by AUM.
GBTC's BTC-per-share ratio differs from IBIT's due to its legacy trust structure. Share price alone doesn't tell you how much Bitcoin you own — the calculator below converts both to their true Bitcoin equivalent.
Use our calculator to compare directly.
Fee Savings Calculator
Strike Price Comparison
Different ETFs have different BTC-per-share ratios, so the same strike price implies different Bitcoin prices.
The Bottom Line
For new investors choosing today, IBIT is the straightforward choice: lower fees, higher liquidity, and a purpose-built ETF structure.
For existing GBTC holders, the decision is more nuanced. You need to weigh the ongoing fee drag — 1.25% per year more than IBIT — against the one-time tax cost of selling. For holders with large unrealized gains, staying in GBTC or using the Grayscale Bitcoin Mini Trust spin-off shares may make more financial sense than triggering a taxable event.
The right answer depends on your individual tax situation.
See our tax-loss harvesting guide for details on this strategy.
Looking beyond these two? See our full comparison of all 12 spot Bitcoin ETFs.
Convert IBIT or GBTC shares to Bitcoin → calculator
More Comparisons
Frequently Asked Questions
Should I switch from GBTC to IBIT?
It depends on your tax situation. If you have large unrealized gains, calculate whether the tax cost of selling exceeds the annual fee savings. If you bought GBTC recently and are sitting on a loss, switching could be a tax-loss harvesting opportunity.
Why is GBTC's expense ratio so much higher?
GBTC originated as a closed-end trust charging 2% annually. When it converted to an ETF, Grayscale lowered the fee to 1.50% but kept it well above competitors. This is a business decision — Grayscale profits from holders who can't easily leave due to tax consequences.
What is the Grayscale Bitcoin Mini Trust (BTC)?
BTC is a low-fee (0.15%) Bitcoin ETF that Grayscale spun off from GBTC. Existing GBTC holders received BTC shares proportionally. It was designed to give those holders a low-cost alternative without forcing a taxable sale.
This article is for informational and educational purposes only and does not constitute investment, legal, or tax advice. Bitcoin and Bitcoin-related products are highly volatile and involve substantial risk of loss. Tax treatment of Bitcoin ETFs — particularly regarding wash sale rules — remains an area without explicit IRS guidance. Consult qualified professionals regarding your specific situation before making investment decisions. Past performance does not guarantee future results.