BlackRock is earning more from its spot Bitcoin ETF than from its longstanding S&P 500 fund—a major shift that reflects changing investor priorities, according to a recent report.
The iShares Bitcoin Trust (IBIT) has officially surpassed the iShares Core S&P 500 ETF (IVV) in terms of annual fee income. Nate Geraci, president of NovaDius Wealth Management, explained to Bloomberg that the change highlights both the growing appetite for Bitcoin investments and the fee pressure facing traditional equity products.
With an expense ratio of 0.25% and approximately $75 billion in assets under management, IBIT is generating about $187.2 million in annual fees. That’s roughly $100,000 more than IVV, despite the latter managing a much larger $624 billion and charging a low 0.03% fee.
Crypto voices were quick to weigh in on what this means for the market. Anthony Pompliano posted on X that “Bitcoin has Wall Street’s full, undivided attention.” Strive Funds CFO Ben Pham added that Bitcoin could signal the decline of both active and passive traditional investment strategies. Trader Cade O’Neill noted that institutional investors are no longer just exploring crypto—they’re all-in.
James McKay, founder of McKay Research, called the development bullish and noted it could be a turning point for digital assets.
Since launching in January 2024, IBIT has brought in a staggering $52.4 billion in inflows, more than any other U.S. spot Bitcoin ETF, according to Farside data.
On Wednesday, IBIT closed at $62.41—up 4.31% for the day—while Bitcoin itself jumped 2.82% to $108,660. Meanwhile, BlackRock’s IVV ended the session at $623.42, a more modest 0.44% gain.
That same day marked the first net outflow for U.S.-based spot Bitcoin ETFs after 15 consecutive days of inflows.
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