Is IBIT a safe investment?

**The iShares Bitcoin Trust ETF (IBIT) is not a safe investment in the traditional sense**, as it is a high-risk product that leverages exposure to Bitcoin. Here's why:

1. **High Volatility**: Bitcoin is known for its extreme price volatility, and IBIT, being a Bitcoin ETF, inherits this characteristic. The 1-year percentage change of 71.98% and the 3-month percentage change of 23.04% highlight its susceptibility to market swings.

2. **Leverage**: IBIT has a leverage ratio of 1, which means it uses borrowed capital to amplify its exposure to Bitcoin. While leverage can increase potential returns, it also magnifies losses in the event of downward price movements.

|code|Ticker|Name|Leverage Ratio|Date|Assets Under Management|market_code|
|---|---|---|---|---|---|---|
|IBIT|IBIT.O|iShares Bitcoin Trust ETF|1|20240729|2.2809950784E10|185|
|IBIT|IBIT.O|iShares Bitcoin Trust ETF|1|20240730|2.2459180384E10|185|
|IBIT|IBIT.O|iShares Bitcoin Trust ETF|1|20240731|2.2561854072E10|185|
|IBIT|IBIT.O|iShares Bitcoin Trust ETF|1|20240801|2.1677136047E10|185|
|IBIT|IBIT.O|iShares Bitcoin Trust ETF|1|20240802|2.1522716936E10|185|
|IBIT|IBIT.O|iShares Bitcoin Trust ETF|1|20240805|2.1522716936E10|185|
|IBIT|IBIT.O|iShares Bitcoin Trust ETF|1|20240806|1.9497321083E10|185|
|IBIT|IBIT.O|iShares Bitcoin Trust ETF|1|20240807|1.8894394254E10|185|
|IBIT|IBIT.O|iShares Bitcoin Trust ETF|1|20240808|2.0587299608E10|185|
|IBIT|IBIT.O|iShares Bitcoin Trust ETF|1|20240809|2.1039448117E10|185|

3. **Market Risk**: Bitcoin is a speculative asset with no underlying economy to support its value. Its price is subject to market sentiment and can fluctuate wildly, sometimes in a single day. Holding Bitcoin or Bitcoin ETFs like IBIT exposes investors to this market risk.
4. **Regulatory and Operational Risks**: As digital assets, Bitcoins and Bitcoin ETFs are subject to regulatory uncertainties. Changes in regulations could negatively impact the value of IBIT. Additionally, operational risks related to digital asset storage and security could affect the ETF's performance.
5. **No Dividend Yield**: Bitcoin ETFs do not typically pay dividends, so IBIT does not offer a income stream like some traditional investments.
6. **Suitability**: IBIT is best suited for investors with a high risk tolerance who are interested in digital assets. It is not a low-risk investment and should not be a significant portion of a conservative investment portfolio.

In conclusion, while IBIT offers a convenient and cost-effective way to gain exposure to Bitcoin, it is not a safe investment for those seeking stable returns. Potential investors should carefully consider their risk tolerance and investment goals before investing in IBIT.