BlackRock’s Bitcoin ETF Overtakes S&P 500 Fund in Revenue Despite Smaller Size
BlackRock’s iShares Bitcoin Trust (IBIT) is now pulling in more revenue than one of its signature funds, the iShares Core S&P 500 ETF (IVV), thanks to a higher management fee—even though IBIT manages significantly less in assets.
Bloomberg data shows IBIT has gathered $52 billion in assets under management (AUM), which is a fraction of IVV’s hefty $624 billion. Still, IBIT’s 0.25% fee brings BlackRock roughly $187.2 million in yearly revenue.
In comparison, IVV, a long-standing favorite for both retail and institutional investors, charges just a 0.03% management fee. Despite its massive asset base, IVV’s annual fee income is slightly lower, totaling around $187.1 million.
IBIT launched in January 2024 after U.S. regulators gave the green light to spot bitcoin ETFs. Since then, it has consistently attracted new capital nearly every month, rapidly growing into the largest spot bitcoin ETF on the market.
IBIT’s swift success underscores strong investor interest in regulated bitcoin investment products, especially those issued by major players like BlackRock. Investors are drawn to such ETFs because they allow exposure to bitcoin without dealing with the technicalities or security risks of directly owning the cryptocurrency.
While IBIT charges higher fees than traditional ETFs, those costs reflect the added complexities, custody needs, and regulatory considerations involved in managing a digital asset fund.
