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

BlackRock’s iShares Bitcoin Trust (IBIT) is now earning more revenue than the firm’s well-known iShares Core S&P 500 ETF (IVV), thanks to a higher fee structure—even though IBIT manages significantly fewer assets.

Bloomberg data shows that IBIT has amassed $52 billion in assets under management (AUM), far less than the $624 billion overseen by IVV. Yet, with a 0.25% management fee, IBIT generates about $187.2 million annually for BlackRock.

By comparison, IVV—an ETF that tracks the S&P 500 and has long been a cornerstone for both retail and institutional investors—charges a much lower fee of just 0.03%. Despite handling nearly nine times more in assets, IVV brings in slightly less annual revenue, at around $187.1 million.

IBIT debuted in January 2024, riding the wave of spot bitcoin ETFs approved by U.S. regulators. Since launching, it has attracted steady inflows nearly every month, quickly growing into the largest spot bitcoin ETF on the market.

IBIT’s rapid rise underscores strong investor interest in regulated bitcoin products, especially those issued by major financial institutions like BlackRock. Many investors see these ETFs as a safer, more convenient way to gain exposure to bitcoin without dealing with the technical and security challenges of directly owning the cryptocurrency.

While IBIT charges higher fees compared to traditional ETFs, the increased costs reflect the added complexity, custody considerations, and regulatory demands tied to managing a fund based on digital assets like bitcoin.