IBIT shareholders cannot directly control their Bitcoin (BTC) private keys

BlackRock's iShares Bitcoin Trust (IBIT) shareholders hold fractional beneficial interests in the trust's net asset value but do not directly control the private keys to the bitcoin held by the trust, and cannot redeem IBIT shares directly for BTC, according to the trust's annual report and prospectus filed with the SEC. The disclosure clarifies that shareholders have an economic interest in the trust's assets rather than direct ownership of the underlying bitcoin, though the rights structure is specific to IBIT and cannot be generalized to other spot ETPs or products in other jurisdictions. The distinction matters for investors weighing direct bitcoin custody versus ETP exposure, as IBIT holders rely on the trust's custodial arrangement rather than self-custody. Watch for how these redemption limitations and custody terms factor into shareholder decisions and any future amendments to the trust's governing documents.