BlackRock’s spot Bitcoin ETF, the iShares Bitcoin Trust (IBIT), has become the firm’s most profitable fund, generating nearly $245 million in fees over the past year. The fund is a hair away from surpassing $100 billion in assets under management (AuM) less than two years after its launch.
The fund now outpaces the iShares Russell 1000 Growth ETF (IWF) and the iShares MSCI EAFE ETF (EFA) by $25 million annually, according to BlackRock ETF analyst Eric Balchunas.
IBIT achieved this milestone just 22 months after its launch, surpassing long-established ETFs like IWF and EFA around mid-July. Balchunas highlighted that other top-earning BlackRock ETFs have been around for over a decade, making IBIT’s rapid growth particularly notable.
With $97.8 billion in net assets under management in just 435 days, IBIT is on track to hit the $100 billion milestone faster than any other ETF in history. By comparison, Vanguard’s S&P 500 index fund (VOO) took over five years to reach the same mark.
The ETF’s growth has been fueled by rising Bitcoin prices, currently around $124,005 and strong investor demand, according to CoinMarketCap. Last week alone, IBIT accounted for over $1.8 billion of the $3.2 billion in total inflows into US spot Bitcoin ETFs.
BlackRock is also exploring new ways to profit from Bitcoin. The firm recently filed to register a Delaware trust company for a proposed Bitcoin Premium Income ETF.
This product would sell covered call options on Bitcoin futures, generating revenue from premiums. Unlike IBIT, however, it may trade away some potential price upside. Balchunas noted that BlackRock’s strategy shows a focus on Bitcoin and Ethereum ETFs, rather than expanding into altcoin ETFs, at least for now.
Meanwhile, the US Securities and Exchange Commission (SEC) has paused reviews on other crypto ETF applications, adding further attention to IBIT’s success.
