BlackRock's IBIT surpasses IVV in fee revenue, signaling a seismic shift in investor preference towards Bitcoin ETFs. Is this the future of finance?
BlackRock's Bitcoin ETF vs. S&P 500: A New King in Town?
Hold on to your hats, folks! The financial world is witnessing a wild twist. BlackRock's Bitcoin ETF (IBIT) is now raking in more dough than its flagship S&P 500 ETF (IVV). Yep, you read that right. Times are changing, and Bitcoin is making a splash!
IBIT's Meteoric Rise
Launched in January 2024, IBIT has quickly become a favorite among investors. It's bringing in about $187.2 million a year in fees, slightly edging out the $187.1 million generated by the long-standing IVV. Considering IVV manages a whopping $624 billion in assets compared to IBIT's $75 billion, this is seriously impressive.
Nate Geraci, president at NovaDius Wealth Management, nailed it when he said, "IBIT overtaking IVV in annual fee revenue is reflective of both the surging investor demand for Bitcoin and the significant fee compression in core equity exposure." People are willing to pay a bit more for that sweet Bitcoin exposure.
The Bitcoin Boom
Why the sudden love for Bitcoin ETFs? Well, it's simple. Investors want an easy way to dive into Bitcoin without the hassle of opening new accounts or navigating the crypto exchange jungle. IBIT has captured over half of all Bitcoin ETF assets, pulling in a staggering $52 billion out of the total $54 billion invested since they began trading.
Paul Hickey, co-founder of Bespoke Investment Group, summed it up perfectly: "It’s an indication of how much pent-up demand there was for investors to gain exposure to Bitcoin." And let's not forget that Bitcoin hit a new all-time high of $111,970 recently (May 22, 2025), though it's currently trading around $109,490.
What About the S&P 500?
Don't count the S&P 500 out just yet! IVV is still a titan, holding its own as the third-largest ETF in the U.S. But the shift is undeniable. Bitcoin's rise reflects a broader trend of regulatory acceptance and mainstream adoption, attracting capital from hedge funds, pensions, and even banks.
Looking Ahead
Could BlackRock surpass State Street in ETF trading volume? Bloomberg Intelligence thinks it's possible. BlackRock currently controls about 25% of ETF trading by dollar volume, closing in on State Street's 31%.
And speaking of the future, despite a slightly rocky start to July, Bitcoin traders are optimistic. Historically, July has been a good month for risk assets, with the S&P 500 enjoying a decade-long streak of
