Bitcoin Is 15 Times More Expensive to Keep Safe Than Gold

Bitcoin Is 15 Times More Expensive to Keep Safe Than Gold

If you're not technologically inclined, owning bitcoin is an expensive proposition.

Bitcoin Investment Trust (NASDAQOTH: GBTC), a popular fund for retail investors, carries a management fee of 2% of assets on an annual basis. Those who have large sums can pay lower wholesale prices for bitcoin storage and custody. A new solution from Coinbase costs 1.2% of the bitcoin's value each year, in addition to an up-front fee of $100,000. The service is designed for institutional investors who own more than $10 million of the digital currency.

When you consider that bitcoin doesn't take up any physical space -- it exists only in digital form -- the high cost of custody and storage is mind-blowing. Based on regulatory filings, SPDR Gold Trust (NYSEMKT: GLD) historically paid about 0.08% of the value of its gold for storage and custody services on behalf of its shareholders, or approximately $1.04 per ounce, per year. In contrast, Coinbase's custody solution costs 15 times more.

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Source: Fool.com