BlackRock’s Bitcoin ETF has surpassed its flagship S&P 500 fund in annual fee earnings, despite an expense ratio nearly nine times higher. The iShares Bitcoin ETF (IBIT) has generated $187.2 million in annual fees, about $100,000 more than the iShares Core S&P 500 ETF (IVV), which has been in operation since 2000 and boasts assets of approximately $624 billion. IBIT, with an expense ratio of 0.25% and around $75 billion in assets, reflects growing investor demand for Bitcoin amid a trend of fee compression in core equity investments. Notably, since its launch in January 2024, IBIT has accrued $52.4 billion in inflows, marking it as the top U.S. spot Bitcoin ETF. This shift highlights the increasing institutional interest in Bitcoin, as emphasized by industry figures like Anthony Pompliano and Ben Pham, who note that the capital is flowing towards Bitcoin with serious intentions. Despite fluctuations, Bitcoin remains a focal point for market attention, with the price witnessing recent gains.

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