BlackRock’s iShares Bitcoin Trust ETF (IBIT), with approximately $75 billion in assets under management (AUM), has achieved a significant milestone. According to *Fortune* and Bloomberg data as of July 1, 2025, IBIT’s estimated annual fee revenue of **$187.2 million (0.25% expense ratio) now slightly exceeds that of the iShares Core S&P 500 ETF (IVV**), which generates $187.1 million despite its massive $624 billion AUM and a lower 0.03% fee structure.
Key Highlights:
- IBIT’s Consistent Inflows: Institutional and retail investors have fueled steady capital inflows over 18 months, with only one month of exceptions.
- Fee Efficiency: IBIT’s higher fee rate (0.25% vs. IVV’s 0.03%) compensates for its smaller AUM, showcasing Bitcoin ETFs’ profitability.
- Market Implications: This underscores growing investor confidence in crypto-based financial products.
FAQs:
Q: Why does IBIT generate more fee revenue than IVV despite smaller AUM?
A: IBIT’s 0.25% expense ratio is significantly higher than IVV’s 0.03%, allowing it to offset the AUM disparity.
Q: What drives IBIT’s consistent inflows?
A: Demand stems from both institutional diversification and retail adoption of Bitcoin as a hedge against traditional market volatility.
Q: How might this impact future ETF offerings?
A: Success like IBIT’s could encourage more asset managers to launch crypto ETFs with competitive fee models.
👉 Explore crypto investment strategies for optimizing portfolio performance.
Comparative Analysis (Markdown Table):
| ETF | AUM | Expense Ratio | Annual Fee Revenue |
|------|-----------|---------------|--------------------|
| IBIT | $75B | 0.25% | $187.2M |
| IVV | $624B | 0.03% | $187.1M |
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