Blackrock’s ishares Bitcoin Trust (Ibit) Now generates more income than one of the most emblematic products of the asset manager, the FNB Ishares Core S&P 500 (IVV)According to Bloomberg data.
Although it has only $ 52 billion in AUM – a fraction of $ 624 billion in IVV in total assets – the higher Ibit costs structure has transformed a larger money manufacturer for the largest asset manager in the world. Bloomberg estimates that Ibit reports about $ 187.2 million a year thanks to its management fees of 0.25%.
In comparison, IVV, which follows the S&P 500 and is a basic food in retail and institutional selling portfolios for years, has only charged 0.03%. This means that it generates approximately $ 187.1 million in annual fees, despite the management of about nine times more active than Ibit.
Ibit launched in January 2024 as part of a wave of FNB Bitcoin Spot approved by American regulators. Since then, the fund has experienced entries each month, except one, amassing $ 52 billion in assets to date. This makes it the largest ETF Bitcoin on the market by a large margin.
The rapid growth of IBIT highlights the continuous demand for regulated Bitcoin investment products, in particular those offered by financial companies established as BlackRock. For investors, the call lies in obtaining Bitcoin exposure without technical obstacles or safety risks to directly hold the assets.
Although Ibit management fees are higher than more traditional ETFs, it reflects the additional complexity, the custody and the regulatory requirements involved in the exposure offer to a digital asset such as Bitcoin.
