Buy Bitcoin Directly or BlackRock’s ETF (IBIT)? Who Will Win in 2026?

▲ Bitcoin (BTC) Exchange-Traded Fund (ETF) ©CoinReaders

As Bitcoin (BTC), which has delivered a remarkable 17,000% return over the past decade, enters a correction phase and stimulates buy-the-dip sentiment, investors are weighing whether direct Bitcoin investment or BlackRock’s iShares Bitcoin Trust (IBIT) will be the better choice beyond 2026. With optimal strategies differing based on individual preferences and investment objectives, it is crucial to clearly understand the advantages and disadvantages of both options.

According to investment outlet The Motley Fool on February 18 (local time), direct Bitcoin investment is suitable for Bitcoin maximalists who seek to eliminate counterparty risk and maintain full control over their assets. Convinced that Bitcoin will become a future global reserve currency, they are willing to endure the inconvenience in exchange for 24/7 unrestricted trading and its use as a payment method. However, this approach requires significant time and effort, including setting up dedicated wallets, learning how to use exchanges, managing private keys, and personally handling all transaction records for tax reporting purposes.

On the other hand, for investors who prioritize convenience above all, BlackRock’s IBIT stands out as an attractive alternative. Managing $52 billion in assets, IBIT is a regulated and approved investment vehicle that can be easily traded through standard brokerage or retirement accounts, offering excellent accessibility. In particular, for large pools of capital such as pension funds and institutional investors where regulatory compliance is essential, it effectively serves as the primary gateway for Bitcoin exposure.

IBIT also simplifies tax reporting, as BlackRock handles the complex administrative tasks on behalf of investors. However, since investors do not directly own Bitcoin, they cannot freely utilize the asset, and the annual 0.25% management fee slightly reduces overall returns. This fee can be viewed as the cost of gaining convenience and simplicity.

Ultimately, the best investment choice depends on individual preferences and goals. For those who prioritize Bitcoin’s monetary value and autonomy, direct investment may be preferable, while investors primarily seeking exposure to price movements and convenience may find IBIT to be the more practical option. Regardless of the path chosen, both strategies fundamentally represent a long-term bet on the appreciation of Bitcoin’s price.

Disclaimer: This article is provided for investment reference purposes only and the publisher is not responsible for any investment losses incurred based on its content. The information herein should be interpreted solely for informational purposes.