BlackRock's Bitcoin ETF Surpasses S&P 500 Fund in Annual Fee Revenue Amid Surging Demand

According to a Bloomberg report, BlackRock's iShares Bitcoin Trust (IBIT) is now generating more annual fee revenue than its signature S&P 500 tracker (IVV). In just 18 months, the $75 billion IBIT, with a 0.25% fee, produces an estimated $187.2 million in annual revenue, surpassing the $187.1 million earned by BlackRock's $624 billion S&P 500 ETF (IVV) which charges only 0.03%. Since spot Bitcoin ETFs began trading in January 2024, IBIT has attracted over $52 billion of the $54 billion total inflows, representing more than 96% of the category. It now holds over 55% of total assets in spot Bitcoin ETFs and has seen outflows in only one month. This milestone reflects surging investor demand for Bitcoin, the significant fee compression in core equity exposure, and a regulatory shift that has opened doors for pension funds, hedge funds, and banks to allocate capital. IBIT has become one of the 20 most traded ETFs in the U.S. market.