BlackRock’s spot Bitcoin ETF is generating more annual revenue than its traditional equity fund.
BlackRock’s spot Bitcoin ETF (IBIT) is bringing in higher annual revenue than the company’s well-known $624 billion S&P 500 fund, according to Bloomberg. This success is mainly due to the higher fee structure of the Bitcoin ETF.
With a 0.25% fee, IBIT generates approximately $187.2 million in annual fees — slightly surpassing the $187.1 million generated by the iShares Core S&P 500 ETF (IVV), despite the latter managing nine times more assets with a 0.03% fee.
IBIT’s numbers
Launched in early 2024 alongside other similar funds, IBIT has amassed over $70 billion in assets under management, becoming the most popular spot Bitcoin ETF on the market. The fund has set new AUM records throughout the year, further consolidating its dominant position.
According to Nate Geraci, president of NovaDius Wealth Management, “IBIT overtaking IVV in annual fee revenue is reflective of both the surging investor demand for Bitcoin and the significant fee compression in core equity exposure.”
“Although spot Bitcoin ETFs are priced very competitively, IBIT is proof that investors are willing to pay up for exposures they view as truly additive to their portfolios,“ Geraci added.
In the spot Bitcoin ETF market, Fidelity Investments holds the second spot with around $22 billion in assets under management. BlackRock also offers an Ethereum-focused ETF, though its size remains considerably smaller than its Bitcoin counterpart.
