BlackRock’s spot Bitcoin exchange-traded fund IBIT has become the asset manager’s highest revenue-producing product, surpassing its flagship S&P 500 index fund despite a significantly smaller asset base. The development marks a significant milestone for cryptocurrency adoption within traditional investment vehicles.
IBIT holds $75 billion in assets under management with a 0.25% annual fee structure, generating approximately $187.2 million in yearly management revenue. By comparison, BlackRock’s iShares Core S&P 500 ETF (IVV) manages $624 billion in assets but carries a substantially lower 0.03% management fee, yielding slightly less at $187.1 million annually.
The revenue shift underscores how cryptocurrency-linked investment products are gaining financial prominence within the ETF market. IBIT’s ascendancy demonstrates investor willingness to accept higher fee structures for cryptocurrency exposure, reflecting the growing institutional recognition of digital assets as a viable portfolio component alongside traditional index products.