BlackRock’s iShares Bitcoin Trust (go) Now, with more revenue than one of Asset Manager’s most iconic products, Ishares Core S&P 500 ETF (IVV),,,,, According to Bloombergone.
Despite only $52 billion in AUM (only a small percentage of IVV’s total assets) the higher fee structure of IBIT has turned it into a larger currency maker of the world’s largest asset managers. Bloomberg estimates that IBIT brings about $187.2 million a year through its 0.25% overhead expenses.
By comparison, IVV tracks the S&P 500, which has been a staple in retail and institutional portfolios for years, charging just 0.03%. This means that although the asset is managed about nine times more than IBIT, it has an annual fee of about $187.1 million.
IBIT was launched in January 2024 as part of a wave of Bitcoin ETFs approved by U.S. regulators. Since then, the fund has inflows monthly, amassing $52 billion in assets to date. This makes it the largest Bitcoin ETF on the market.
The rapid growth of IBIT highlights the ongoing demand for regulated Bitcoin investment products, especially from established financial companies such as Blackrock. For investors, the appeal is to gain exposure to Bitcoin without the technical barriers or security risks to directly hold the asset.
While IBIT has higher administrative fees than more traditional ETFs, it reflects the additional complexity, custody and regulatory requirements for providing exposure to digital assets such as Bitcoin.
