According to Bloomberg data, BlackRock’s ISHARES BITcoin Trust (IBIT) is currently generating more revenue than one of Asset Manager’s most iconic products, the ISHARES Core S&P 500 ETF (IVV).
Despite having only $52 billion in total assets of IVV ($624 billion in total assets of IVV), IBIT’s higher fee structure has made it a major money maker for the world’s largest asset manager. Bloomberg estimates IBIT brings about $187.2 million per year through a 0.25% management fee.
By comparison, IVV, a staple in retail and institutional portfolioes that tracks the S&P 500 for several years, charges just 0.03%. This means that despite managing about nine times more assets than IBIT, it generates approximately $187.1 million in annual fees.
IBIT was launched in January 2024 as part of a wave of spot Bitcoin ETFs approved by US regulators. Since then, the fund has seen an inflow except one per month, accumulating $52 billion in assets to date. This has made the largest Bitcoin ETF on the market bigger.
IBIT’s rapid growth underscores the continued demand for regulated Bitcoin investment products, particularly those offered by established financial companies such as BlackRock. For investors, this appeal lies in their exposure to Bitcoin without the technical hurdles or security risks to directly hold assets.
IBIT’s management fees are higher than traditional ETFs, but reflect the complexity, management and regulatory requirements involved in providing exposure to digital assets such as Bitcoin.
