BlackRock's Bitcoin ETF has reached $75 billion in assets under management (AUM) within 18 months of launch, with its higher fees compared to traditional equity ETFs making IBIT a revenue powerhouse—even surpassing its flagship S&P 500-tracking ETF IVV (the third-largest ETF in the U.S.). This signals investors' willingness to pay a premium for Bitcoin exposure in their portfolios.
IBIT Outperforms IVV in Revenue Despite Smaller AUM
BlackRock's iShares Bitcoin Trust ETF (IBIT), launched in January 2024, has attracted massive inflows from institutional and retail investors, now holding $75 billion in AUM. Bloomberg estimates its 0.25% fee rate generates ~$187.2 million annually—edging out IVV’s $187.1 million, despite IVV’s $624 billion AUM (9x larger) and ultra-low 0.03% fee.
| Metric | IVV | IBIT |
|---|---|---|
| AUM | $624 billion | $75 billion |
| Fee Rate | 0.03% | 0.25% |
| Annual Fees | $187.1 million | $187.2 million |
IVV, a 25-year-old ETF, ranks as the third-largest in the U.S. among 4,300+ products, trailing only Vanguard and State Street’s S&P 500 funds.
Investors Prioritize Bitcoin Exposure Over Cost Efficiency
Post-regulatory approval in 2024, Bitcoin ETFs like IBIT have seen explosive demand from hedge funds, pensions, and banks. IBIT’s trading volume now places it among the top 20 ETFs—a testament to Bitcoin’s unique appeal despite higher fees.
👉 Why institutional investors are flocking to Bitcoin ETFs
Nate Geraci, President of NovaDius Wealth Management, notes:
"IBIT’s fee revenue surpassing IVV highlights both Bitcoin’s demand surge and the extreme fee compression in equity ETFs. Investors are willing to pay for exposure they deem portfolio-critical."
Paul Hickey, Bespoke Investment Group co-founder, adds:
"This reflects Bitcoin’s dominance as a store of value—investors want seamless access without separate accounts."
FAQ Section
Q: Why does IBIT charge higher fees than IVV?
A: Bitcoin ETFs involve custody and security complexities absent in traditional index funds, justifying the 0.25% fee.
Q: Is IBIT’s growth sustainable?
A: While volatile, institutional adoption suggests long-term viability as a digital gold proxy.
Q: How does Bitcoin ETF performance compare to holding BTC directly?
A: ETFs offer regulatory safety but track spot prices minus fees—direct ownership avoids this cost.
👉 Explore Bitcoin ETF strategies for 2025
Risk Disclosure: Cryptocurrency investments are highly volatile and may result in total capital loss. Assess risks carefully.