Blackrocks Ishares Bitcoin Trust (Ibit) Now generates more revenue than one of the asset manager’s most iconic products, Ishares Core S&P 500 ETF (IVV)According to Bloomberg data.
Despite having only $ 52 billion in AUM – a fraction of IVVS $ 624 billion in total assets – Ibit’s higher fee structure has made it a larger money machine for the world’s largest active manager. Bloomberg estimates that Ibit brings approx. $ 187.2 million annually through its 0.25% management fee.
In comparison, IVV, which traces the S&P 500 and has been a staple in retail and institutional portfolios for years, only 0.03%. This means it generates about $ 187.1 million in annual fees, despite managing about nine times more in assets than Ibit.
In January 2024, Ibit launched as part of a wave of Spot Bitcoin ETFs approved by US regulators. Since then, the fund has seen influx every month except one, a total of $ 52 billion in assets to date. That makes it the biggest spot of Bitcoin Etf on the market with a wide margin.
The rapid growth of Ibit highlights the ongoing demand for regulated Bitcoin investment products, especially those offered by established financial companies such as BlackRock. For investors, the appeal lies in getting exposure to bitcoin without the technical obstacles or security risks by keeping the asset direct.
While Ibit’s management fee is higher than more traditional ETFs, it reflects the extra complexity, custody and regulatory requirements involved in offering exposure to a digital asset like Bitcoin.
