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

BlackRock’s Bitcoin ETF Outpaces S&P 500 Fund in Revenue, Thanks to Higher Fees

BlackRock’s iShares Bitcoin Trust (IBIT) is now bringing in more revenue than the firm’s widely held iShares Core S&P 500 ETF (IVV), despite managing significantly fewer assets. The difference? A much higher fee structure.

According to Bloomberg, IBIT has accumulated $52 billion in assets under management (AUM), which is considerably less than the $624 billion IVV oversees. However, IBIT charges a 0.25% management fee, generating approximately $187.2 million annually.

By comparison, IVV charges a minimal 0.03% fee. Even though it manages nearly nine times more assets than IBIT, its yearly fee revenue is just slightly lower at around $187.1 million.

Launched in January 2024 after the U.S. approved spot bitcoin ETFs, IBIT has experienced near-constant inflows and quickly established itself as the leading product in its category.

The ETF’s success reflects a growing appetite among investors for regulated crypto exposure—especially when delivered through trusted institutions like BlackRock. These funds offer a way to invest in bitcoin without the complexities of managing private keys or dealing with digital wallets.

While IBIT’s fees are steeper than those of traditional ETFs, they account for the additional complexities, including custody, regulation, and operational infrastructure required to handle bitcoin as an underlying asset.