BlackRock's Bitcoin ETF Surpasses S&P 500 Fund in Revenue Generation

Key Highlights

BlackRock’s iShares Bitcoin Trust (IBIT) is now producing approximately $187.2 million in annual fees with around $52 billion in assets under management (AUM), as reported by Bloomberg.
In comparison, the iShares Core S&P 500 ETF (IVV) generates slightly less revenue at $187.1 million, but manages significantly more at $624 billion in AUM.

BlackRock’s iShares Bitcoin Trust (IBIT) has quickly become a significant revenue generator, outpacing its famous iShares Core S&P 500 ETF (IVV), as highlighted in a recent Bloomberg report. While the IBIT brings in considerable fees due to its higher management fee of 0.25%, the IVV, which has long been a staple for both retail and institutional investors, charges only 0.03%.

Revenue Comparison

IBIT launched in January 2024 amid a surge of interest in spot bitcoin ETFs approved by U.S. regulators. It achieved continuous inflows for almost every month since—culminating in its current position as the leading spot bitcoin ETF by a substantial margin. This reflects a growing demand for regulated bitcoin investment products from reputable financial institutions like BlackRock.

In summary, despite having far less total assets compared to the IVV, the IBIT’s unique fee structure has made it a remarkably profitable product for BlackRock.