BlackRock’s iShares Bitcoin Trust (IBIT) is now bringing in more annual fee revenue than the firm’s flagship S&P 500 ETF, according to a report by Bloomberg.
While it was launched just 18 months ago, IBIT has amassed $75 billion in assets, drawing steady investor interest.
With a 0.25% expense ratio, the fund is projected to earn about $187.2 million in annual fees, just ahead of the $187.1 million generated by the $624 billion iShares Core S&P 500 ETF (IVV), which charges a much lower fee of 0.03%.
“IBIT overtaking IVV in annual fee revenue is reflective of both the surging investor demand for Bitcoin and the significant fee compression in core equity exposure,” said Nate Geraci, President at NovaDius Wealth Management.
“Although spot Bitcoin ETFs are priced very competitively, IBIT is proof that investors are willing to pay up for exposures they view as truly additive to their portfolios.”
Since spot Bitcoin ETFs began trading in January 2024, IBIT has absorbed the lion’s share of capital, pulling in $52 billion of the $54 billion total.
It now controls more than 55% of the assets in the category and has only experienced outflows during one month.
“It’s an indication of how much pent-up demand there was for investors to gain exposure to Bitcoin as part of their overall portfolio without having to open a separate account somewhere else,” said Paul Hickey, co-founder of Bespoke Investment Group.
“It also illustrates the leadership of Bitcoin in the crypto space where its perceived utility as a store of value has essentially left the others in its dust.”
While IVV remains a heavyweight in the ETF landscape as the third-largest U.S. fund by assets, IBIT’s rapid growth underscores how regulatory greenlights have transformed access to Bitcoin exposure.
The move has triggered a wave of capital from institutions like hedge funds, pensions, and major banks, pushing IBIT into the ranks of the 20 most actively traded ETFs in the market.