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BlackRock’s Bitcoin ETF ‘Machine’ Outearns Legendary S&P 500 Fund: Details
In a stunning turn of events, BlackRock’s Bitcoin exchange-traded fund (ETF) has surpassed the legendary S&P 500 fund in terms of annual fee revenue. The unprecedented performance is a testament to the surging demand for exposure to the world’s most popular cryptocurrency.
According to Bloomberg, the iShares Bitcoin Trust, which manages $75 billion in assets, generated an estimated $187.2 million in annual fees due to its 0.25% expense ratio. This figure is staggering considering that the ETF has only been on the market since January 2024.
In contrast, BlackRock’s flagship S&P 500 tracker, known as the iShares Core S&P 500 ETF, rakes in an impressive $187.1 million annually from its massive $624 billion in assets and a tiny 0.03% expense ratio. This disparity highlights the significant gap between Bitcoin ETFs and traditional equity funds.
Nate Geraci, president of NovaDius Wealth Management, aptly described the performance as “simply a machine.” It is clear that investors are flocking to the Bitcoin market in droves, with the BlackRock fund capturing an astonishing 52% of the $54 billion in total spot Bitcoin ETF inflows since its inception. This dominance is further underlined by the fact that the fund has experienced net inflows for 17 of its first 18 months.
The remarkable achievement marks a significant shift in investor sentiment, with many now viewing Bitcoin as an essential component of their overall portfolio. Paul Hickey, co-founder of Bespoke Investment Group, attributes this trend to pent-up demand and the perceived utility of Bitcoin as a store of value.
Source: cryptopotato.com
