iShares Bitcoin Trust (IBIT - Blackrock)

• Create/Redeem Size: 40K blocks ($25 per-Share initial price so ~$1M block size)
• Exchange: NASDAQ
• Crypto Custodian: Coinbase
• Cash Custodian: BNY Mellon
• Redemption: Cash
• Fees above $500K not assumed by Sponsor are born upon the Trust
• Prime Execution Agent: Coinbase
• Trade Credits need to be repaid by 6PM EST on settlement day. Trade credits allow Trust to pre-fund buys/sells of BTC in-connection with cash create/redeems to pay Sponsor Fee or other expenses not assumed by Sponsor
• If CF Benchmarks Index is unreliable, a fair value event is established and a Seconary Index is used. The index calculates a simple average of 240, 15-second VWAPs across Bitfinex, Bitflyer, Gemini, Itbit, Kraken, and Luno. If unreliable or unavailable, Coinbase price at 4PM EST is used.
• CF Benchmark Index: simple average over volume-weighted median in 5 minute blocks between 3-4PM EST on constituent platforms (Coinbase, Bitstamp, itBit, Kraken, Gemini, LMAX Digital). Volume-weighted median differs from simple median in that trade size matters.
• Execution fully depends on algos for order routing Coinbase develops and which Connected Trading Venues Coinbase supports. In the future, a subset of Permitted Connected Trading Venues may be specified. Coinbase will provide some info around order execution daily: all-in price at which each portion of an order was filled and supporting info around intended best execution. Some connected venues may not be disclosed due to confidentiality (namely OTC providers). Coinbase should just be routing orders and unless agreed upon, the client should not be using RFQ or Coinbase OTC.
• Trade financing agreement to not be modified without providing 180 days notice.
• Fee: 30bps but 20bps for the first 5B in assets committed or first 12mo. I had previously assumed they would price higher given the lack of a vangaurd alternative, but looks like it would now be cheaper to buy ibit and hold for a year than place a single trade on coinbase as retail (40-65bps).