Bit holder

A bit holder configured to be driven by a power tool, the bit holder comprising:

• a shank extending along an axis, the shank configured to be coupled to the power tool, the shank defining a groove;
• a bit holding body defining a longitudinal bore that receives a portion of the shank, the bit holding body having an outer surface;
• and
• a sleeve disposed over the shank and the bit holding body, the sleeve movable relative to the shank and the bit holding body to shift the bit holder between a first state, in which the shank is configured to transfer torque from the power tool to the bit holding body, and a second state, in which the shank is rotatable independently of the bit holding body;
• wherein the sleeve is secured to the bit holding body without a clip.

A method of assembling a bit holder, the method comprising:

• advancing a shank into a bit holding body to align a shank cutout of the shank with a first bit holding body aperture of the bit holding body;
• inserting a first bearing into the shank cutout and the first bit holding body aperture;
• sliding a first sleeve over the bit holding body until a first sleeve groove of the first sleeve aligns with the first bearing;
• and
• subsequently advancing the shank into the bit holding body such that the first bearing disengages the shank cutout and engages a first shank groove of the shank.