BlackRock’s Flagship S&P 500 Fund Surpassed in Revenue by Bitcoin ETF

BlackRock’s Bitcoin ETF Surpasses S&P 500 Fund in Revenue Despite Smaller Asset Size

BlackRock’s iShares Bitcoin Trust (IBIT) is now producing more revenue than the asset manager’s well-known iShares Core S&P 500 ETF (IVV), thanks to its higher management fees—even though IBIT oversees far fewer assets.

Data from Bloomberg shows IBIT has accumulated $52 billion in assets under management, a fraction of IVV’s $624 billion. However, IBIT’s 0.25% management fee translates to about $187.2 million in annual revenue for BlackRock.

In contrast, IVV—a mainstay in both retail and institutional investment portfolios—charges only 0.03%. Despite its enormous asset base, IVV generates roughly $187.1 million a year, just below IBIT’s earnings.

IBIT launched in January 2024 after U.S. regulators approved spot bitcoin ETFs. Since then, it has consistently attracted investor inflows nearly every month, growing to become the largest spot bitcoin ETF in the market.

The impressive rise of IBIT reflects a growing appetite among investors for regulated bitcoin products from established financial institutions like BlackRock. For many, these ETFs offer exposure to bitcoin without the technical hurdles or security risks tied to holding the cryptocurrency directly.

Though IBIT charges higher fees compared to traditional ETFs, those costs reflect the additional complexities, custody services, and regulatory obligations associated with managing a digital asset fund.