BlackRock's asset management giant has turned its Bitcoin ETF into a more lucrative revenue stream than its $624 billion S&P 500 fund. What does this say about Bitcoin's position in institutional portfolios ?
According to a recent Bloomberg report, BlackRock’s iShares Bitcoin Trust (IBIT) now generates more annual revenue than the iShares Core S&P 500 ETF (IVV), the asset management giant’s benchmark fund.
With a fee ratio of 0.25%, IBIT is projected to earn $187.2 million annually, compared to $187.1 million for IVV despite the latter’s much larger assets under management ($624 billion).
This trend reversal reveals how the premium fee structure of Bitcoin ETFs is proving highly profitable for asset managers. As Nate Geraci, president of NovaDius Wealth Management, explains, “IBIT surpassing IVV in terms of annual revenue reflects both growing investor demand for Bitcoin and the significant fee compression in core equity exposure.”
These results come as BlackRock recently invested $638.5 million in Bitcoin, acquiring 6,088 BTC. This decision demonstrates the asset management giant’s long-term confidence in the digital asset, despite outflows observed during the first day of spot Bitcoin ETF trading.
In fact, IBIT has recorded $52.4 billion in inflows since January, far outpacing competitors like Fidelity. This momentum is part of a broader movement where Bitcoin is gradually transitioning from a speculative asset to a central element of macro-institutional strategies.
In total, IBIT holds more than 50% of the Bitcoin ETF market share. With over $70 billion in AUM (Assets Under Management), compared to $20 billion for Fidelity.
As crypto entrepreneur Anthony Pompliano highlighted, “Bitcoin now has all of Wall Street’s attention.” His colleague Cade O’Neill adds that “institutions are no longer simply curious, they are committed.”
Overall, the growth of the crypto market, combined with Bitcoin’s recent surge to over $108,000, illustrates how the digital asset is gaining legitimacy among institutional investors. With its Bitcoin ETF surpassing its S&P 500 fund in terms of revenue, BlackRock seems to confirm this trend.
Bitcoin is thus establishing itself as a new benchmark in the portfolios of major asset managers, well beyond its speculative dimension. This evolution could permanently transform Bitcoin forever.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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