A recent report highlights that BlackRock, known as the largest asset manager globally, is pulling in more annual fees from its Bitcoin Exchange-Traded Fund (ETF) than from its flagship S&P 500 fund.
“The IVV fund has surpassed IBIT in annual fees, indicating a surge in investor interest toward Bitcoin and a notable drop in core equity fees,” a source mentioned in Bloomberg.
Bitcoin is grabbing Wall Street’s attention
With an expense ratio of 0.25% and around $75 billion in assets under management, BlackRock’s iShares Bitcoin ETF (IBIT) saw its annual fees hit $187.2 million. The IVV fund, launched back in 2000, is significantly larger — over eight times the size of IBIT, managing about $624 billion. However, it has a much lower fee at just 0.03%, making it almost nine times more profitable in relative terms.
Crypto leaders quickly reacted to this news. Entrepreneur Anthony Pipriano remarked on X, stating, “Bitcoin is deeply entrenched in Wall Street and very cautious.” Ben Fam, CFO of a fund, added that Bitcoin represents the “end” of traditional active management and passive index funds.
Trader Cade O’Neill shared on X, “This shows clearly where capital is heading. Institutions are no longer just curious, they are really investing.” James McKay, founder of McKay Research, said this news is optimistic and likely significant.
Since its debut in January 2024, IBIT has attracted $52.4 billion, according to Far Side Data.
As of Wednesday, the IBIT closed at $62.41, marking a 4.31% increase for the day, while Bitcoin itself rose by 2.82%, trading at $108,660. The IVV fund closed the day at $623.42, up 0.44%.
On a related note, the U.S.-based spot Bitcoin ETF experienced its first net outflow after 15 consecutive days of inflows.
This article is for informational purposes and does not offer investment advice. Readers should conduct their own research before making investment decisions.
