The Bitcoin ETF Revolution: IBIT Outscores S&P 500 Fund in Annual Earnings
A recent report claims that BlackRock, the largest asset manager in the world, is currently making more money each year from its spot Bitcoin exchange-traded fund than from its flagship S&P 500 fund.
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,
NovaDius Wealth Management president Nate Geraci
BlackRock’s iShares Bitcoin ETF (IBIT) earned approximately $100,000 more than the iShares Core S&P 500 ETF (IVV), with annual fees of $187.2 million. IBIT’s expense ratio is 0.25%, and its assets under management (AUM) are approximately $75 billion. Launched in 2000, the IVV has assets of over $624 billion, making it more than eight times larger than the IBIT. However, its fees are about nine times lower, at only 0.03%.
Executives React: Bitcoin Signals the End of Traditional Portfolio Strategies
The findings prompted several crypto executives to quickly remark. For instance, Bitcoin will be the end of active management and passive indexation portfolios, according to Ben Pham, chief financial officer at Strive Funds.
Bitcoin has Wall Street’s full, undivided attention now.
Crypto entrepreneur Anthony Pompliano
Crypto trader Cade O’Neill said it says everything about where capital is headed. Institutions aren’t just curious anymore, they’re committed. Meanwhile, McKay Research founder James McKay said the news was bullish.
BlackRock’s IBIT Dominates With $52.4B Inflows Since Launch
According to Farside data, BlackRock’s IBIT has received $52.4 billion in inflows since its January 2024 inception, more than any other US spot Bitcoin ETF. According to statistics from Google Finance, the IBIT ended Wednesday’s trading day at $62.41, up 4.31%. The increase coincides with a 2.82% increase in the price of Bitcoin, which is currently trading at $108,660. In the meantime, the IVV ended the day up 0.44% at $623.42.
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