BlackRock’s Bitcoin ETF Overtakes S&P 500 Fund in Revenue Despite Smaller Asset Base

BlackRock’s iShares Bitcoin Trust (IBIT) is now raking in more revenue than one of the firm’s flagship funds, the iShares Core S&P 500 ETF (IVV), thanks to its higher fee structure—even though it manages significantly fewer assets.

According to data from Bloomberg, IBIT has amassed $52 billion in assets under management (AUM), which is just a fraction of IVV’s hefty $624 billion. However, IBIT charges a 0.25% management fee, translating into roughly $187.2 million in annual revenue for BlackRock.

In comparison, IVV—a long-standing favorite among retail and institutional investors—charges a much lower fee of only 0.03%. Despite its massive asset base, the fund generates around $187.1 million in yearly fees, slightly less than IBIT’s total.

IBIT launched in January 2024 following the U.S. approval of spot bitcoin ETFs. Since its debut, it has attracted steady investor inflows nearly every month, growing into the largest spot bitcoin ETF on the market.

IBIT’s rapid success underscores investors’ growing appetite for regulated bitcoin products offered by trusted financial institutions like BlackRock. Many investors are drawn to such funds for the chance to gain bitcoin exposure without grappling with the technical challenges or security concerns of holding the cryptocurrency directly.

While IBIT’s management fees are higher than those of traditional ETFs, the premium reflects the added complexity, custody costs, and regulatory compliance required to manage an asset like bitcoin.