BlackRock, the world’s largest asset manager, is now generating more annual fee revenue from its spot Bitcoin exchange-traded fund than from its flagship S&P 500 fund, according to a recent report.
“The fact that IBIT has surpassed IVV in annual fee revenue highlights both the growing investor appetite for Bitcoin and the ongoing fee compression in core equity markets,” Nate Geraci, president of NovaDius Wealth Management, told Bloomberg on Wednesday.
Bitcoin has now secured Wall Street’s full attention
With an expense ratio of 0.25% and approximately $75 billion in assets under management, BlackRock’s iShares Bitcoin ETF (IBIT) has brought in $187.2 million in annual fees—roughly $100,000 more than its iShares Core S&P 500 ETF (IVV).
Despite being more than eight times larger, with around $624 billion in assets, the IVV charges a much lower fee of just 0.03%, nearly nine times less than IBIT.
The shift has drawn swift reactions from the crypto world. Crypto entrepreneur Anthony Pompliano declared on X, “Bitcoin has Wall Street’s full, undivided attention now.” Ben Pham, CFO of Strive Funds, went further, claiming Bitcoin could mark “the death” of both active management and traditional passive index portfolios.
Crypto trader Cade O’Neill commented that the development “says everything about where capital is headed. Institutions aren’t just curious anymore—they’re committed.”
James McKay, founder of McKay Research, called the news bullish, adding it was “Probably something.”
Since its debut in January 2024, BlackRock’s IBIT has attracted $52.4 billion in inflows—the highest among all U.S. spot Bitcoin ETFs, according to data from Farside.
BlackRock’s IBIT ended Wednesday’s trading session at $62.41, rising 4.31% on the day, according to Google Finance data. The gain coincided with a 2.82% jump in Bitcoin’s price, which is now trading at $108,660.
In comparison, the iShares Core S&P 500 ETF (IVV) closed at $623.42, up 0.44% for the day.
Despite recent momentum, U.S.-based spot Bitcoin ETFs saw their first net outflow on Wednesday after 15 straight trading days of inflows.
