BlackRock’s spot Bitcoin ETF is now generating more annual fee revenue than the firm’s flagship S&P 500 ETF, signaling the scale of institutional appetite for digital assets.
NovaDius Wealth Management president Nate Geraci described it as a “reflection of surging investor demand for Bitcoin” coupled with aggressive fee compression in traditional equity products.
Despite being only a fraction of the size, BlackRock’s iShares Bitcoin ETF (IBIT) has amassed around $75 billion in assets under management and charges a 0.25% expense ratio. That’s nearly nine times higher than the 0.03% fee charged by the iShares Core S&P 500 ETF (IVV), which holds approximately $624 billion.
Bloomberg calculations show IBIT has produced about $187 million in annual fees—just edging out IVV, even though IVV has been trading since 2000.
Crypto Leaders Weigh In on Bitcoin’s Wall Street Ascent
The milestone triggered a wave of reactions across the crypto sector.
Anthony Pompliano, an early Bitcoin advocate, commented on X that Bitcoin has now captured “Wall Street’s full, undivided attention.”
Ben Pham, CFO of Strive Funds, argued the success of BlackRock’s Bitcoin ETF underscores a deeper shift: he believes Bitcoin will eventually disrupt both active management and passive index-tracking portfolios.
Their comments highlight how quickly digital assets have moved from the fringes into the core of institutional investing conversations.
IBIT Leads the Pack as Inflows Continue
Since launching in January 2024, BlackRock’s IBIT has recorded $52.4 billion in inflows—the largest among all US spot Bitcoin ETFs, per Farside data.
On Wednesday, IBIT closed at $62.41, rising 4.3% for the day, in tandem with Bitcoin’s own rally past $108,600. Meanwhile, IVV ended the session up a modest 0.44%.
Despite the day’s gains, the US spot Bitcoin ETF sector also posted its first net outflow in over two weeks, reflecting the volatility that continues to define digital asset investing.
Quick Facts
- BlackRock’s iShares Bitcoin ETF (IBIT) now generates about $187 million in annual fees, surpassing its flagship S&P 500 ETF.
- IBIT charges a 0.25% expense ratio compared to IVV’s 0.03%.
- IBIT has accumulated $75 billion AUM since January 2024, while IVV holds $624 billion.
- Bitcoin ETFs recorded $52.4 billion in inflows, making IBIT the top-performing US product.
- Crypto leaders say Bitcoin’s rise marks a historic shift in Wall Street priorities.
