**“Bitcoin ETF Boom: How IBIT Outearned BlackRock’s Flagship Fund”**
In a surprising turn for traditional finance, **BlackRock’s spot Bitcoin ETF, IBIT**, has now become **more profitable than IVV**, its massive S\&P 500 index fund. According to Bloomberg, this marks a major shift in how institutional investors — and asset managers — are generating revenue in a crypto-integrated financial landscape.
BlackRock launched IBIT in January 2024 following the SEC’s landmark approval of spot Bitcoin ETFs. While IVV manages more assets overall, IBIT has delivered **superior fee income** thanks to the explosive interest in Bitcoin exposure among both retail and institutional players.
The reason? **Higher fees and exceptional volume.**
While IVV charges a slim 0.03% management fee, IBIT charges 0.25%. That’s nearly 8x more — and with over **\$20 billion in assets and soaring daily trading volume**, the earnings pile up fast. IBIT has quickly become a **top ETF by inflows**, signaling strong appetite for regulated crypto investment vehicles.
This is also a **landmark moment for Bitcoin’s financial mainstreaming**. A product like IBIT allows wealth managers, pensions, and conservative allocators to gain BTC exposure **without the operational complexity of wallets, custody, or exchanges**.
Even more notably, IBIT’s profit performance **exceeds legacy equity products**, something unthinkable just two years ago. BlackRock, the world's largest asset manager, is now earning more from **Bitcoin than from the S\&P 500** — at least on a per-product basis.
For the crypto space, it validates the thesis that **Wall Street's adoption was inevitable**—and now, it’s profitable.
Whether this momentum sustains depends on broader market sentiment, Bitcoin’s price trajectory, and regulatory clarity. But for now, IBIT is **not just a crypto product — it’s BlackRock’s cash cow.**
