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BlackRock’s Bitcoin ETF ‘Machine’ Outearns Legendary S&P 500 Fund: Details
In a shocking turn of events, the BlackRock iShares Bitcoin Trust (IBIT) has surpassed the legendary S&P 500 tracker in annual fee revenue, despite being significantly smaller in size. This remarkable achievement demonstrates the immense demand for Bitcoin exposure and the trust investors have placed in this particular fund.
As reported by Bloomberg on July 2nd, IBIT’s estimated $187.2 million in annual fees is a staggering accomplishment, especially considering its relatively modest $75 billion in assets under management. In contrast, the BlackRock iShares Core S&P 500 ETF (IVV) generates a respectable $187.1 million annually from an enormous $624 billion in AUM. While IVV’s size advantage may have initially suggested it would continue to lead the pack, IBIT has proven itself to be a “machine” that continues to attract investors.
IBIT’s remarkable performance is not limited to its fee revenue, as it has also captured 52% of total spot Bitcoin ETF inflows and holds over 55% of all Bitcoin ETF assets since its January 2024 launch. In fact, the fund has seen inflows in an astonishing 17 of its first 18 months.
Industry experts attribute this incredible success to the pent-up demand for investors to gain exposure to Bitcoin as part of their overall portfolio. Paul Hickey, co-founder of Bespoke Investment Group, noted that IBIT’s dominance is evidence of the leadership of Bitcoin in the crypto space, with many investors recognizing its perceived utility as a store of value.
It appears that IBIT has become a force to be reckoned with, boasting an impressive streak of no outflows since June 6th. In fact, it saw $1.47 billion in inflows over the past fortnight alone.
To put this achievement into perspective, other crypto funds like REX-Osprey Solana staking ETF launched on Wednesday and managed a respectable $33 million in trading volume on its first day, although this is still dwarfed by the opening days of spot Bitcoin and Ethereum ETFs.
In related news, the SEC has approved Grayscale’s application to convert its Digital Large-Cap Fund into an ETF, comprising a basket of the top five cryptocurrencies by market capitalization.
Source: cryptopotato.com
