BlackRock’s IBIT Smashes Records: Now the Firm’s Third Most Profitable Fund in Just 18 Months
Wall Street's crypto darling just pulled off a hat-trick—without breaking a sweat.
BlackRock’s IBIT fund has rocketed past legacy products to become the asset manager’s third-highest earner in a mere year and a half. Not bad for something the finance old guard swore was a passing fad.
How it happened:
- IBIT’s crypto-native strategy outpaced 97% of BlackRock’s 250+ funds
- The fund now generates more revenue than most of the firm’s decade-old ETFs
- All while traditional managers were busy ‘educating’ clients about blockchain risks
One industry insider quipped: ‘Turns out printing digital money beats printing prospectuses.’
The kicker? This is just the warm-up act. With institutional adoption accelerating, IBIT’s trajectory could make even Bitcoin’s 2021 bull run look tame.
IBIT Becomes BlackRock’s Third Most Profitable Fund
BlackRock’s spot Bitcoin ETF has quickly established itself as the firm’s third-highest revenue-generating fund. The ETF has $76 billion in assets under management (AUM), and a 0.25% expense ratio, generating $191 million in annual revenue. The ETF’s stunning growth puts it behind only BlackRock’s iShares Russell 1000 Growth ETF and the iShares MSCI EAFE ETF. IBIT launched in January, easily crossing early projections thanks to strong demand from institutional and retail investors. The ETF has experienced consistent inflows since then, which have significantly contributed to its annual revenue. Most analysts believe IBIT will surpass its competition in revenue generation. Bloomberg ETF analyst Eric Balchunas stated,
“IBIT is now the 3rd highest revenue-generating ETF for BlackRock out of 1,197 funds, and is only $9b away from being #1. Just another insane stat for a 1.5-year-old (literally an infant) ETF.”
Strategy co-founder Michael Saylor responded to the milestone, stating that IBIT will soon become BlackRock’s number one revenue-generating ETF. Market watchers also noted that the spot Bitcoin ETF is only $9 billion in assets away from surpassing IWF as BlackRock’s top revenue-generating ETF.
A Record-Breaking ETF
BlackRock manages over 1,100 ETFs. However, IBIT’s stunning growth has been unlike any other. The ETF’s current revenue is only $20 million lower than IWF and $16 million lower than EFA. Current market conditions and investor sentiment could help IBIT climb higher. BlackRock’s IBIT became the fastest ETF to reach $2 billion in inflows, reaching the milestone just days after its launch. The fund crossed $50 billion within six months, placing it among the fastest-growing ETFs of all time.
IBIT has consistently registered inflows from corporate treasuries, hedge funds, and advisors, benefiting from the rising demand for Bitcoin and other digital asset investment products. According to BlackRock, IBIT’s growth signals rising institutional adoption of Bitcoin. IBIT’s trajectory mirrors the early success of gold ETFs and suggests a push towards crypto integration in traditional portfolios.
IBIT’s success is largely due to the fact that it gives investors exposure to Bitcoin without the complexities of wallets and direct ownership of the asset. It also underscores the growing demand for Bitcoin as a mainstream investment asset.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
