The iShares Bitcoin Trust ETF (IBIT) is a passively managed, physically-backed bitcoin ETF sponsored by BlackRock. The Trust holds bitcoin directly and issues shares that track its price, before fees. Investors buy and sell IBIT shares on Nasdaq through standard brokerage accounts, gaining bitcoin exposure without managing wallets, private keys, or crypto platforms. Authorized Participants — including Goldman Sachs, JP Morgan, Jane Street, and Citadel Securities — create and redeem shares in large blocks of 40,000 shares directly with the Trust, keeping the share price aligned with the underlying bitcoin NAV. IBIT charges a single annual Sponsor's Fee of 0.25% of NAV, accrued daily. Because the Trust holds no cash, it covers this fee by periodically selling small amounts of bitcoin, causing bitcoin per share to slowly decline over time — a feature common to all physically-backed commodity ETFs. Revenue scales with NAV, which grows when bitcoin's price rises or when new investor inflows increase shares outstanding and bitcoin held. BlackRock, as Sponsor, bears operating costs — including custodian, listing, audit, and legal fees — in exchange for this fee stream.