Bitcoin ETF Flips the Script: BlackRock's IBIT Out-earns S&P 500 Fund
- Keyword Financial
- Jul 2
- 3 min read
Introduction
BlackRock’s spot Bitcoin ETF (IBIT) has surpassed the firm’s flagship S&P 500 ETF (IVV) in annual fee revenue, despite being much smaller in total assets. IBIT, with an expense ratio of 0.25% and about $75 billion in assets under management, has generated $187.2 million in annual fees—roughly $100,000 more than IVV, which manages $624 billion but charges a much lower 0.03% fee. This shift highlights both the surging investor demand for Bitcoin and the ongoing fee compression in traditional equity funds.
The news has drawn strong reactions from the crypto and financial sectors. Industry figures like Anthony Pompliano and Ben Pham see this as a sign that Bitcoin now commands Wall Street’s full attention, with some suggesting it could disrupt traditional active and passive investment strategies. Crypto trader Cade O’Neill noted that institutional capital is no longer just curious about Bitcoin but is now actively committed, while research founder James McKay called the development bullish for the crypto market.
