BlackRock’s Bitcoin ETF (IBIT) Just Crushed the S&P 500 in Fee Revenue—Here’s Why It Matters

Wall Street’s crypto pivot hits a milestone: BlackRock’s IBIT—the heavyweight Bitcoin ETF—now rakes in more fee revenue than its flagship S&P 500 fund. The old guard’s cash cow just got outgunned by digital gold.

How? Relentless demand. While traditional ETFs bleed assets, IBIT keeps sucking up BTC like a institutional vacuum cleaner. Fee structures don’t lie—when investors pay more for crypto exposure than S&P stability, the narrative flips.

The kicker? This isn’t some niche product. BlackRock doesn’t do ‘niche.’ Their stamp of approval turned Bitcoin into a balance sheet essential faster than you can say ‘asymmetric bet.’ (And let’s be real—after decades of 2% management fees for index funds, they’re probably thrilled to find something investors will overpay for again.)

Bottom line: The fee revenue gap isn’t just a metric—it’s a warning shot across traditional finance’s bow. When the world’s largest asset manager makes more money shepherding people into crypto than stocks, even the skeptics start checking their blind spots.

TLDR

• IBIT earns more fees than IVV, signaling crypto’s growing ETF market power.
• BlackRock’s IBIT tops IVV in fee revenue, despite launching just in 2024.
• High fees and strong demand push IBIT past IVV in annual ETF revenue.
• IBIT dominates spot Bitcoin ETFs and now rivals top equity ETFs in fees.
• Bitcoin ETF IBIT outpaces S&P 500 giant IVV in revenue, redefining ETF trends.

BlackRock’s iShares Bitcoin Trust (IBIT) has overtaken the iShares Core S&P 500 ETF (IVV) in annual fee revenue. Despite launching only in 2024, IBIT’s fee structure and demand have fueled this rapid shift. Its growth signals a significant moment for crypto-related financial products.

IBIT Outpaces IVV in Fee Revenue

The iShares bitcoin Trust generates an estimated $187.2 million in annual fees from its 0.25% management charge. In comparison, IVV earns approximately $187.1 million annually and manages over $624 billion in assets. IVV charges a much lower 0.03% fee, which limits its total revenue.

💥BREAKING:

THE $IBIT ETF OFFICIALLY MAKES BLACKROCK MORE MONEY THAN ITS S&P500 ETF. pic.twitter.com/3QtocdOXbx

— crypto Rover (@rovercrc) July 2, 2025

Although IVV has long served as a low-cost staple in many portfolios, fee compression has eroded its edge.  IBIT’s higher expense ratio reflects the added complexity of handling digital assets under strict regulation. This shift shows a growing preference for niche, higher-fee products that offer unique portfolio exposure.

BlackRock has positioned IBIT as a gateway for those seeking crypto exposure through a regulated and familiar structure. Since its January 2024 launch, the ETF has attracted consistent monthly inflows.

IBIT’s Growth Shows Appetite for Crypto Exposure

The trust has amassed approximately $75 billion in assets, holding over 55% of all capital invested in U.S. spot Bitcoin ETFs. This dominance highlights strong momentum and a clear shift in where capital is flowing. IBIT drew $52 billion of the $54 billion that entered the category since January 2024.

Demand has remained resilient despite market fluctuations, with only one month showing net outflows. The product now ranks among the top 20 most actively traded ETFs in the U.S. market. Its rapid ascent demonstrates the increasing comfort with crypto exposure via traditional financial platforms.

Its performance suggests the market is rewarding products that combine digital asset exposure with institutional trust. BlackRock’s reputation and the ETF’s structure have helped ease entry barriers. The trend could further impact how financial firms design new digital asset offerings going forward.

Traditional Equity Funds Feel Pressure

IVV remains one of the most well-known and widely held equity ETFs, ranking as the third-largest in the U.S. It tracks the S&P 500 Index and serves as a benchmark for broad equity performance. However, growing price sensitivity has impacted revenue even as assets continue rising.

Fee compression across Core equity funds has squeezed margins and opened opportunities for higher-fee niche offerings.  IVV remains dominant in size, but its lower revenue per dollar managed makes it less lucrative. This development underlines a shift in the ETF market’s revenue dynamics.

As Bitcoin products rise in prominence, traditional ETFs may face greater competition for both assets and attention. The evolution of investor priorities could continue reshaping the ETF landscape. Digital asset products, like IBIT, now compete directly with long-established financial instruments.