BlackRock’s Crypto ETF Tops Massive S&P 500 Fund in Fees
- IBIT edges ahead of IVV after being on the market for a year and a half.
- IVV was launched 25 years ago and, at eight times the size of IBIT, is BlackRock’s largest ETF.
- IBIT charges a higher expense ratio than the index-tracking IVV.
After a year and a half on the market, BlackRock’s spot Bitcoin ETF—the iShares Bitcoin Trust (IBIT)—has edged past the firm’s largest exchange-traded fund in fee generation, underscoring the crypto product’s historic success.
In a case of the hare beating the tortoise, the $74.9 billion IBIT is topping the $623.8 billion iShares Core S&P 500 ETF (IVV), even though it holds one-eighth of the older fund’s assets. According to etf.com’s calculation, as of July 3, IBIT hauls in $187.2 million annually, narrowly beating the $187.1 million generated by IVV.
IBIT has become a growth engine as BlackRock, the world’s biggest ETF issuer, taps into soaring demand for cryptocurrency investments that are rapidly moving into the mainstream. IBIT began trading with 10 other spot Bitcoin ETFs in January 2024, becoming the biggest among the group as well as the fastest-growing ETF in history.
IBIT vs. IVV Fees
IBIT brings in more revenue by leveraging its 0.25% management fee, which is more than six times the 0.03% fee levied by IVV.
IBIT has pulled in $52.4 billion in net flows since it launched, with the remainder of its assets resulting from the rising Bitcoin price. Bitcoin has gained 81% over the past year, according to CoinMarketCap, steadily gaining since October and hitting an all-time high of about $112,000 in late May.
IVV, of course, is no slouch. The third-largest U.S. ETF recently passed 25 years on the market, and some analysts expect it will surpass the $633.5 billion SPDR S&P 500 ETF Trust (SPY) and move into the No. 2 position.
Still, IVV fee generation has been muted thanks to the fund's net inflows of $2.9 billion so far this year. Over the same period last year, it hauled in $30.5 billion. IBIT has a net inflow gain of $15.1 billion so far this year.
IBIT vs. IVV—Source: etf.com & FactSet data
IBIT isn't currently iShare’s top fee generator. It appears headed for that distinction, which would put it among the world’s top revenue-generating ETFs.
