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.
Source: Fool.com
