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Bitcoin ETF Blitz: BlackRock’s IBIT Tops S&P 500 Giant in Fee Take
- BlackRock’s Bitcoin ETF (IBIT) now earns more than its huge S&P 500 fund, reflecting soaring institutional demand for crypto in under two years.
- IBIT has absorbed US$52B of US$54B in net spot Bitcoin ETF inflows since SEC approval, holding over half the segment’s assets and ranking top 20 by US ETF volume.
- Nate Geraci says IBIT’s fees show investors will pay for high-conviction crypto bets as passive equity fees shrink.
BlackRock’s Bitcoin ETF is now out-earning its massive S&P 500 fund, showing just how far institutional crypto demand has come in under two years.
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Since the Securities and Exchange Commission (SEC) cleared the first spot Bitcoin ETFs in January 2024, IBIT has absorbed US$52B (AU$78B) of the combined US$54B in net inflows into these products, commanding over half of all assets in the segment.
Investors Start to Warm Up to Bitcoin’s Potential
Nate Geraci, president at NovaDius Wealth Management, told Bloomberg that IBIT’s revenue is essentially a clear sign of the shifting gap between passive equity fees and high-conviction bets.
IBIT overtaking IVV in annual fee revenue is reflective of both the surging investor demand for Bitcoin and the significant fee compression in core equity exposure. Although spot Bitcoin ETFs are priced very competitively, IBIT is proof that investors are willing to pay up for exposures they view as truly additive to their portfolios.
Nate Geraci, President of NovaDius Wealth Management The fund has only logged one month of outflows since launch. By trading volume, it already ranks in the top 20 of all US ETFs, according to Bloomberg Intelligence.
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Bitcoin’s price has climbed above US$109K (AU$165K) this week before stabilising at US$108k (AU$164K), according to data from CoinGecko.
The same inflows that built IBIT into the market’s biggest Bitcoin ETF have helped push the world’s top crypto to new highs as large institutions legitimise direct holdings.
Fidelity sits in second place among spot Bitcoin ETFs with about US$30B (AU$45B) in AUM. BlackRock also runs a smaller Ethereum product, and of course, it dominates that market too.
Ethereum ETFs crossed a major milestone when they reached over US$4B in inflows, around AU$6.13B, as Crypto News Australia recently reported.
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Author
José Oramas
José is a journalist and translator with a keen interest in blockchain and cryptocurrencies.
