BlackRock’s iShares Bitcoin Trust (IBIT) has made headlines by surpassing its own legacy S&P 500 ETF (IVV) in annual fee revenue—despite launching just 18 months ago. This remarkable achievement underscores the growing demand for Bitcoin exposure through traditional investment vehicles.
IBIT Surpasses IVV in Annual Fee Income
The iShares Bitcoin Trust currently manages around $75 billion in assets, charging a 0.25% annual fee. That translates to approximately $187.2 million in annual fee revenue. In contrast, BlackRock’s much older and significantly larger S&P 500 ETF—IVV—manages $624 billion but charges a modest 0.03% fee, generating around $187.1 million annually.
The narrow difference in revenue, despite the massive gap in assets under management, highlights the high-margin nature of Bitcoin ETFs compared to traditional index funds.
Massive Inflows and Market Dominance
Since spot Bitcoin ETFs became available in January 2024, IBIT has attracted an impressive $52 billion in investor capital. Many investors prefer gaining Bitcoin exposure through ETFs to avoid the complexities of crypto wallets and exchanges. That convenience has helped IBIT secure over 55% of the entire spot Bitcoin ETF market.
IBIT has seen outflows in only one month since launch and now ranks among the top 20 most-traded funds in the U.S. It’s not just retail investors driving the trend—hedge funds, pension plans, and even banks have begun allocating to Bitcoin through ETFs, signaling a shift in market sentiment.
According to Bloomberg data, total spot Bitcoin ETF flows have reached $54 billion, with IBIT capturing the lion’s share. This success positions BlackRock as a dominant player in the crypto ETF space, validating Bitcoin’s growing status as a legitimate store of value in diversified portfolios.
