BlackRock’s Bitcoin ETF Brings In More Revenue Than Its S&P 500 Fund Despite Smaller Asset Base
BlackRock’s iShares Bitcoin Trust (IBIT) is now generating higher revenue than the firm’s widely recognized iShares Core S&P 500 ETF (IVV), thanks to its comparatively higher fee structure, even though IBIT manages far fewer assets.
According to Bloomberg figures, IBIT has gathered $52 billion in assets under management, which pales in comparison to IVV’s substantial $624 billion. Yet, IBIT charges a management fee of 0.25%, earning BlackRock roughly $187.2 million annually.
In contrast, IVV—an established favorite among both institutional and retail investors—charges a mere 0.03%. Despite overseeing almost nine times the assets, IVV’s yearly fee income is slightly lower at about $187.1 million.
IBIT was launched in January 2024 following the regulatory green light for spot bitcoin ETFs in the U.S. Since its inception, the fund has consistently attracted new capital almost every month, propelling it to become the market’s largest spot bitcoin ETF.
IBIT’s rapid ascent highlights the growing interest among investors for regulated bitcoin investment vehicles offered by major players like BlackRock. Many see these ETFs as a way to gain exposure to bitcoin without grappling with the technicalities or security concerns of holding the digital asset directly.
While IBIT’s fee is higher compared to traditional ETFs, it reflects the added complexities, custody requirements, and regulatory demands associated with managing a fund tied to a digital asset like bitcoin.
