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BlackRock’s Bitcoin ETF Surpasses S&P 500 Revenue
BlackRock, the world’s largest asset manager, reports that its spot Bitcoin exchange-traded fund (IBIT) now generates more annual fees than its flagship S&P 500 ETF (IVV), according to a recent analysis.
Rising Demand and Fee Compression Drive Shift
The IBIT’s success is attributed to surging investor appetite for Bitcoin and significant fee compression in traditional index funds like the IVV.
“IBIT overtaking IVV in annual fee revenue is reflective of both.” stated Nate Geraci, president of NovaDius Wealth Management, citing increasing demand for Bitcoin and reduced costs in core equity ETFs.
Performance in Figures
IBIT, despite managing about $75 billion in assets (AUM) and carrying an expense ratio of 0.25%, generated $187.2 million in total annual fees, exceeding IVV by approximately $100,000.
In contrast, the IVV, launched in 2000 and managing around $624 billion (over eight times IBIT) charges a lower 0.03% expense ratio (nearly nine times less), generating corresponding revenue significantly less than IBIT.
Industry Commentary
Crypto figures weighed in on the findings. Anthony Pompliano suggested the focus reflects “Bitcoin has now captured Wall Street’s ‘undivided attention’.
Ben Pham described Bitcoin as poised to “be the death” of passive indexing strategies.
Cade O’Neill pointed to the shift indicating institutional commitment, while James McKay deemed the news possibly bullish.
Recent Market Data
Launched by BlackRock in January 2024, IBIT has attracted $52.4 billion in inflows, the highest among US spot Bitcoin ETFs.
In trading on the day BlackRock published its findings, IBIT closed $62.41 (up 4.31%), while BTC trading around $108,660 (up 2.82%). Concurrently, the IVV closed at $623.42 (up 0.44%). Notably, US-based spot Bitcoin ETFs experienced net outflows on that day after 15 consecutive inflow periods, although IBIT saw inflows while the sector faced a net outflow.
The associated promotional graphic referenced “Cryptocurrencies, Bitcoin Price, Markets” sourced from CoinMarketCap, indicating BTC climbed ~2.37% over the prior 30 days and $108,660 represents its price level. [Image:#1]
The image caption states Bitcoin is up 2.37% vs. CoinMarketCap data. [Image:#2]
Related: Bitcoin’s STH cost basis suggests $117K is the next stop for BTC price
Magazine: Pakistan will deploy Bitcoin reserve in DeFi for yield, says Bilal Bin Saqib
This article is for informational purposes only and does not contain investment advice or recommendations. Every investment and trading move involves risk.
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