BlackRock, the world’s largest asset manager, has hit a landmark milestone that reflects Bitcoin’s surging mainstream adoption: its spot Bitcoin exchange-traded fund (IBIT) is now generating more annual fee revenue than its flagship iShares Core S&P 500 ETF (IVV).According to a new report cited by Bloomberg, the IBIT launched in January 2024 now pulls in $187.2 million in annual fees, surpassing IVV by about $100,000, despite the S&P 500 fund being over eight times larger in total assets.
Bitcoin Steals Wall Street’s Focus
NovaDius Wealth Management president Nate Geraci commented, “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.”
IBIT charges an expense ratio of 0.25% on approximately $75 billion AUM, while IVV, with around $624 billion AUM, charges just 0.03%. The contrast shows how investors’ appetite for Bitcoin exposure is generating outsized revenue, despite the Bitcoin ETF’s smaller base.
Industry leaders are weighing in on the shift. Anthony Pompliano, a noted crypto entrepreneur, wrote on X that “Bitcoin has Wall Street’s full, undivided attention now.” Ben Pham, CFO of Strive Funds, declared that Bitcoin could become “the death of active management and passive indexation portfolios.”
Crypto trader Cade O’Neill added, “It says everything about where capital is headed. Institutions aren’t just curious anymore, they’re committed.” Meanwhile, James McKay of McKay Research called the report “bullish” and “probably something.”
By the Numbers
Since its debut, BlackRock’s IBIT has attracted a staggering $52.4 billion in inflows, the highest of any U.S. spot Bitcoin ETF, based on Farside data.
On Wednesday, the IBIT closed at $62.41, up 4.31% for the day, tracking Bitcoin’s price spike of 2.82% to $108,660. By comparison, BlackRock’s IVV fund edged up just 0.44% to close at $623.42.
However, Wednesday also marked the first net outflow day for U.S.-based spot Bitcoin ETFs after 15 straight days of inflows a sign of cautious profit-taking as Bitcoin hovers near record highs.
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