Key Takeaways
- BlackRock’s IBIT now earns more in annual fees than its S&P 500 fund IVV despite being smaller.
- IBIT has attracted $52.4 billion in inflows since launching in January 2024, reflecting strong institutional interest.
- US spot Bitcoin ETFs saw their first net outflow after 15 straight days of inflows.
BlackRock’s iShares Bitcoin ETF (IBIT) is now generating more annual fee revenue than the firm’s flagship S&P 500 ETF (IVV), despite being much smaller in size.
With an expense ratio of 0.25% and approximately $75 billion in assets under management, IBIT has brought in $187.2 million in annual fees—about $100,000 more than IVV.
By comparison, IVV manages $624 billion but charges a lower 0.03% expense ratio.
Nate Geraci, president of NovaDius Wealth Management, commented on the shift:
“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.”
Industry reaction
Industry figures highlighted the significance of these developments.
Anthony Pompliano stated that Bitcoin now commands Wall Street’s “full, undivided attention.”
Ben Pham, CFO of Strive Funds, suggested Bitcoin could spell “the death” of active and passive index portfolios.
Trader Cade O’Neill remarked:
“Institutions aren’t just curious anymore, they’re committed.”
IBIT ETF
Since its January 2024 launch, IBIT has seen $52.4 billion in inflows—the highest among US spot Bitcoin ETFs.
IBIT’s holdings and flows illustrate this rapid growth. The ETF closed Wednesday at $62.41, up 4.31% on the day, while Bitcoin itself rose 2.82% to $108,660.
US-based spot Bitcoin ETFs recently experienced their first net outflow day after 15 consecutive trading days of inflows, as tracked on the ETF flows chart.
