BlackRock’s Bitcoin ETF IBIT Surpasses S&P 500 ETF IVV in Fees

BlackRock’s iShares Bitcoin Trust (IBIT) has generated $187.2 million in fees, surpassing the $187.1 million generated by its flagship S&P 500 ETF (IVV). This outcome is notable given that IBIT manages substantially fewer assets compared to IVV. IBIT holds about $75 billion in assets, while IVV manages roughly $624 billion. The fee structure plays a significant role in this discrepancy, with IBIT charging 0.25% in fees compared to IVV’s 0.03%. This higher fee rate allows IBIT to generate more revenue per dollar despite managing a smaller asset pool.

IBIT has seen consistent inflows, with 17 out of the past 18 months showing positive investor interest. This steady inflow has positioned IBIT as a dominant player in the Bitcoin ETF market, accounting for more than 55% of assets across all Bitcoin ETFs. The fund’s performance and the growing interest in Bitcoin as a strategic asset have contributed to its success. Large corporations, such as MicroStrategy and Tesla, have also expanded their Bitcoin holdings directly, reinforcing the broader shift towards viewing Bitcoin as a strategic asset.

The regulated access to Bitcoin through ETFs and direct corporate acquisitions present a powerful combination for investors. The choice between convenience, cost, and direct ownership is shaping how investors enter the Bitcoin market. As demand for Bitcoin continues to grow, the fee structures and buying methods are likely to evolve. The performance of IBIT, with a +73.23% return over the past year, reflects consistent institutional demand and tracks closely with Bitcoin’s macro uptrend. The fund’s strong price compression and holding above its 20-day EMA suggest a potential breakout above $64, targeting the $66.80–$69.50 range based on Fibonacci extensions.

IBIT’s assets under management (AUM) have surged to $74.89 billion, making it the largest Bitcoin ETF globally. Inflows over the last 12 months total $34.70 billion, highlighting dominant institutional interest. The ETF continues to trade near its net asset value (NAV), with only a −0.2% discount, reflecting high market efficiency and liquidity. BlackRock’s ETF structure allows Bitcoin exposure via traditional brokerage accounts, eliminating custody concerns and improving tax clarity for institutional participants. Recent filings suggest additional feeder funds and 401(k) integration proposals are under review, which could drive further flows in the latter half of 2025.

With Bitcoin nearing its all-time high, IBIT is attracting momentum and capital rotation from traditional risk assets. Analysts are projecting further upside for the ETF if Bitcoin breaks $112K, potentially pushing IBIT above $70 in July, particularly as volatility compresses and investor appetite for crypto-aligned equity instruments grows. The steady inflows and strong performance of IBIT indicate a growing demand for regulated Bitcoin exposure, positioning it as a key player in the evolving landscape of digital assets.