BlackRock’s Bitcoin ETF Outpaces S&P 500 Fund In Annual Revenue

HomeNews* BlackRock’s spot Bitcoin ETF, IBIT, now generates more annual revenue than its S&P 500 tracker fund.

• IBIT has reported inflows in almost every month since its January 2024 launch.
• IBIT brings in about $187.2 million in yearly fees, more than the $187.1 million earned by the much larger IVV S&P 500 ETF.
• Strong investor demand for Bitcoin exposure drives IBIT’s rapid growth and success.
• IBIT ranks among the 20 most traded U.S. ETFs so far in 2024 and could soon enter the top 10. BlackRock’s iShares Bitcoin Trust ETF (IBIT) has overtaken the company’s flagship S&P 500 ETF (IVV) in annual revenue, according to data from Bloomberg. IBIT, which launched in January 2024, quickly gained investor interest and surpassed almost all other funds in inflows since its inception.

• Advertisement - With an expense ratio of 0.25%, IBIT is projected to earn $187.2 million per year from management fees. In contrast, the S&P 500 ETF IVV, though over nine times larger with $624 billion in assets and a lower 0.03% fee, generates $187.1 million annually. “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.

IBIT has maintained steady inflows, with positive net investments in all but one of the last 18 months. BlackRock purchased over $930 million worth of Bitcoin in the past month and sold about $260.9 million during the same period, according to Farside Investors. “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.

The Bitcoin ETF’s strong trading activity has placed IBIT among the 20 most traded U.S. ETFs this year, with the potential to enter the top 10 if current trends persist. Athanasios Psarofagis of Bloomberg Intelligence noted that IBIT now commands about 25% of dollar volume in ETF trading, close to the 31% held by State Street.

BlackRock’s expansion into crypto funds signals growing industry acceptance. Several financial experts say the fund’s popularity reflects investor preference for regulated, accessible Bitcoin exposure through established market channels.

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