Bitcoin ETFs: What Your Fees Actually Cost

The convenience of a Bitcoin Exchange-Traded Fund (ETF) comes at a cost that goes beyond its stated expense ratio. According to an analysis, the fees charged by these funds compound over time, affecting investors' returns.

BlackRock's IBIT ETF charges 0.25% annually after its promotional waiver expired in January 2025. This means a $100,000 position would lose $250 in the first year alone to fees, compounding to approximately $2,528 over ten years assuming a flat Bitcoin price.

Grayscale's GBTC charges 1.50% annually, six times the rate of its lowest cost competitors, costing a $100,000 holder approximately $14,017 over ten years in fees alone, a difference of $11,489 compared to IBIT for identical Bitcoin exposure.