BlackRock’s Bitcoin ETF just outperformed its core S&P 500 fund in revenue

Key Points

1. BlackRock’s iShares Bitcoin Trust (IBIT) is projected to earn $187.2 million in annual fees with a 0.25% expense ratio, surpassing the $187.1 million generated by its $624 billion S&P 500 ETF (IVV) with a 0.03% fee.

2. IBIT’s success underscores the premium fee structures of crypto ETFs, making them highly profitable for asset managers even with smaller asset bases.

3. Industry experts, including Nate Geraci and Anthony Pompliano, view this as a sign of Bitcoin’s growing institutional adoption and Wall Street’s increasing focus on crypto.

4. BlackRock recently purchased $638.5 million worth of Bitcoin (6,088 BTC), signaling long-term confidence in the asset despite a brief outflow streak in early July.

5. IBIT has recorded $52.4 billion in inflows since January, outpacing competitors like Fidelity, while Bitcoin’s price surged to $108,974.54 at the time of reporting.