BlackRock’s IBIT Bitcoin ETF Surges in Revenue
BlackRock’s spot Bitcoin exchange-traded fund IBIT has quickly risen to become the asset manager’s third-highest revenue-generating ETF, just 18 months after its launch. According to data shared by Bloomberg senior ETF analyst Eric Balchunas, the IBIT fund has approximately $76 billion in assets under management with an expense ratio of 0.25%, generating an estimated $191 million in annual revenue.
Strategy Chairman Michael Saylor has responded to this milestone by predicting that IBIT will soon become BlackRock’s number one revenue-generating ETF. The fund currently sits behind only BlackRock’s iShares Russell 1000 Growth ETF (IWF) and the iShares MSCI EAFE ETF (EFA) in terms of revenue generation.
A separate Bloomberg News report highlighted that IBIT is now only $9 billion in assets away from surpassing IWF to become BlackRock’s top revenue-generating ETF out of its extensive lineup of over 1,100 funds. Balchunas commented on this achievement, stating, “Just another insane stat for a 1.5-year-old (literally an infant) ETF.”
IBIT was launched in January 2024 alongside other spot Bitcoin ETFs that were approved by the U.S. Securities and Exchange Commission. The fund quickly gained traction, becoming the fastest ETF in history to cross $2 billion in inflows within days of its debut. By its six-month mark, IBIT had grown to over $50 billion in assets, showcasing the increasing demand for regulated Bitcoin exposure from both institutional and retail investors.
The performance of IBIT underscores the growing integration of Bitcoin into traditional portfolios, following a similar trajectory to gold ETFs over the past two decades. The ETF has been embraced by financial advisors, corporate treasuries, and hedge funds looking for liquid, regulated exposure to Bitcoin without the complexities of direct custody.
In conclusion, BlackRock’s IBIT Bitcoin ETF has proven to be a standout performer in the ETF space, demonstrating the significant interest in regulated Bitcoin exposure among investors of all types. Its rapid rise in revenue and assets under management solidify its position as a top player in the market and a key player in the growing cryptocurrency investment landscape.