BlackRock’s iShares Bitcoin Trust ETF (IBIT) has become the company’s most lucrative offering, surpassing its second-highest earner by $25 million in fees, and is now on the verge of hitting the $100 billion asset mark.

Over the last year, IBIT has produced almost $245 million in fees, making it the top ETF by profit for BlackRock. Eric Balchunas, a BlackRock ETF Analyst, highlighted on X that IBIT generated $25 million more in annual revenue compared to the iShares Russell 1000 Growth ETF and iShares MSCI EAFE ETF.

IBIT became BlackRock’s most profitable ETF in mid-July, placing it at the forefront of the company’s offerings despite being relatively new, having started just 22 months ago. It’s only $2.2 billion away from the $100 billion milestone.

IBIT Performance Image Source: Eric Balchunas

BlackRock earns revenue from IBIT through management fees set at 0.25% of its total managed assets, with revenues increasing as investor interest and Bitcoin’s price rise. This fund currently holds a dominant position in the US market, accounting for $1.8 billion of the $3.2 billion total inflows into US spot Bitcoin ETFs during its second largest inflow week on record.

The heightened interest in Bitcoin ETFs has also been bolstered by a more favorable regulatory environment for cryptocurrencies under the Trump administration, which has voiced intentions to make the U.S. the “crypto capital of the world.”

IBIT Poised to Break Records

With net assets of $97.8 billion accumulated over 435 days, IBIT is gearing up to break Vanguard’s S&P 500 index fund record for the fastest ETF to reach $100 billion, as VOO took over 2011 days to achieve that milestone.

Record Track Image Source: Eric Balchunas

Additionally, BlackRock has recently filed to establish a Delaware trust company for its proposed Bitcoin Premium Income ETF, indicating a strategy to diversify its Bitcoin-related financial products. This new offering aims to sell covered call options on Bitcoin futures to generate yields.

While these regular distributions may limit upside potential compared to IBIT’s direct investment in Bitcoin, analyst Eric Balchunas suggests that BlackRock will continue to explore Bitcoin and Ether (ETH) based products, steering clear of the altcoin ETF frenzy other asset managers are capitalizing on, for the time being.

The SEC has currently paused reviews on cryptocurrency ETF applications until the federal government reopens.