BlackRock Sees Its Bitcoin ETF Outperforming Flagship S&P 500 Fund in Revenue Generation

BlackRock’s Bitcoin ETF Now Generates More Revenue Than Its Famous S&P 500 Fund

BlackRock’s iShares Bitcoin Trust (IBIT) has surpassed the revenue of one of the asset manager’s flagship products, the iShares Core S&P 500 ETF (IVV), largely due to its higher fee structure—even though it oversees far fewer assets.

Data from Bloomberg indicates that IBIT has accumulated $52 billion in assets under management (AUM), significantly less than IVV’s impressive $624 billion. However, IBIT charges a 0.25% management fee, translating into around $187.2 million in annual revenue for BlackRock.

By contrast, IVV, which tracks the S&P 500 index and has long been popular among retail and institutional investors, charges only a 0.03% fee. Despite managing nearly nine times as many assets, IVV generates slightly less in yearly fees, bringing in about $187.1 million.

IBIT launched in January 2024 after U.S. regulators approved spot bitcoin ETFs. Since its inception, the fund has consistently attracted investor inflows almost every month, making it the largest spot bitcoin ETF currently available.

The rapid rise of IBIT underscores growing investor demand for regulated bitcoin investment options, especially those offered by trusted financial giants like BlackRock. For many investors, these funds provide exposure to bitcoin without the complexities or security concerns of holding the digital asset directly.

Although IBIT’s fees are higher than those of traditional ETFs, the additional costs reflect the complexities, custody requirements, and regulatory compliance involved in managing a digital asset like bitcoin.