BlackRock's Bitcoin Trust Surpasses Renowned S&P 500 Fund in Annual Fee Revenue

The BlackRock iShares Bitcoin Trust (IBIT) has reached an impressive milestone by generating more annual fee income than BlackRock's flagship S&P 500 tracker, despite being significantly smaller. The cryptocurrency fund produces an estimated $187.2 million in annual fees from its $75 billion assets with a 0.25% expense ratio.

On the other hand, the BlackRock iShares Core S&P 500 ETF (IVV) generates $187.1 million from a whopping $624 billion assets, but with a lower 0.03% expense ratio. Since its launch in January 2024, IBIT has attracted $52 billion of the total $54 billion in Bitcoin ETF inflows and now possesses over 55% of all Bitcoin ETF assets. The fund's success is seen as indicative of the growing demand for Bitcoin investment and its perceived value as a store of wealth.