Bitcoin News Today: BlackRock's Bitcoin ETF Becomes Wall Street's New Cash Cow

BlackRock's iShares Bitcoin Trust (IBIT) has emerged as the firm's most profitable exchange-traded fund (ETF), generating $245 million in annual revenue in 2025, according to Bloomberg analyst Eric Balchunas. This figure surpasses the earnings of BlackRock's traditionally top-performing ETFs, such as the iShares Russell 1000 Growth ETF (IWF) and the iShares MSCI EAFE ETF (EFA), by $25 million. IBIT's rapid ascent is underscored by its $97.8 billion in assets under management (AUM), just $2.2 billion shy of the $100 billion milestone. Launched in January 2024, the fund achieved this scale in 435 days, outpacing the 2,011-day timeline of the Vanguard S&P 500 ETF (VOO) to reach $100 billion.

The fund's profitability is driven by a 0.25% management fee on its total AUM, with revenue expanding alongside Bitcoin's price surge and increased investor demand. In early October 2025, Bitcoin surpassed $125,000, fueled by record inflows into U.S. spot Bitcoin ETFs. During the week ending October 3, 2025, U.S. Bitcoin ETFs attracted $3.24 billion in net inflows, with IBIT accounting for $791.55 million-nearly 80% of the total. This performance highlights BlackRock's dominance in the space, as its fund now holds 52.6% of the market share in U.S. spot Bitcoin ETFs.

Institutional adoption has been a key catalyst. BlackRock's IBIT joined the top 20 U.S. ETFs by AUM in October 2025, a milestone achieved in less than two years. This rapid growth reflects the broader acceptance of Bitcoin as a mainstream asset, with institutions viewing it as a diversifier and a hedge against inflation. The SEC's approval of spot Bitcoin ETFs in January 2024 marked a turning point, legitimizing the asset class and enabling traditional investors to gain exposure through regulated vehicles.

BlackRock is also exploring new revenue streams tied to Bitcoin. The firm filed for a Delaware trust company to launch the Bitcoin Premium Income ETF, which would sell covered call options on Bitcoin futures to generate yield. This move signals a strategic pivot to capture additional income while maintaining exposure to Bitcoin's price movements. Analysts note that such products could attract risk-averse investors seeking regular returns, though they may trade off potential upside compared to direct Bitcoin holdings.

Looking ahead, IBIT is projected to cross $100 billion in AUM within months, positioning it as the first ETF to achieve this benchmark. JPMorgan's Nikolaos Panigirtzoglou recently argued that Bitcoin's volatility has compressed to 30%, making it a more attractive allocation for institutional investors compared to gold. With Bitcoin's price surging past $126,000 and corporate treasuries accumulating over 1 million BTC, the fund's growth trajectory appears robust. However, regulatory uncertainties, such as the U.S. government shutdown pausing new ETF approvals, remain potential headwinds.