BlackRock’s iShares Bitcoin Trust (IBIT) has surpassed the company’s flagship S&P 500 ETF in generating revenue, marking a significant milestone for the asset manager. The Bitcoin ETF, which holds about $75 billion in assets, produces approximately $187.2 million annually in fees due to its 0.25% expense ratio. This slightly exceeds the $187.1 million generated by BlackRock’s much larger S&P 500 ETF, which manages around $624 billion but charges a far lower fee of 0.03%.
Since its launch in January 2024, IBIT has attracted strong and consistent inflows from both institutional and retail investors, becoming the dominant Bitcoin ETF in the market with over 55% of total Bitcoin ETF assets. The fund now holds more than 700,000 bitcoins, surpassing other major holders such as Fidelity and Grayscale.
This rapid growth has propelled IBIT to become BlackRock’s third-largest revenue generator among nearly 1,200 funds it operates, highlighting the growing mainstream acceptance of cryptocurrency investment products. The success of the Bitcoin ETF reflects a broader shift in investor appetite toward digital assets and underscores the increasing importance of crypto exposure in diversified portfolios.
In recent weeks, BlackRock’s crypto investment products have seen inflows exceeding $2.4 billion, further emphasizing the strong demand and confidence in their Bitcoin ETF.
This development signals a new era in asset management where digital assets are no longer niche but integral components of large-scale investment strategies.
