BlackRock’s Bitcoin ETF Outearns S&P 500 ETF With 25 Basis-Point Fee

BlackRock’s iShares Bitcoin ETF (IBIT) has surpassed its S&P 500 ETF (IVV) in fee revenue, generating approximately $186 million annually. In contrast, IVV earns roughly $183 million. This shift is notable given that IBIT was launched less than 18 months ago and already manages close to $75 billion in assets, while IVV oversees $609 billion. IBIT’s 25 basis-point fee yields more revenue than IVV’s three basis-point fee, highlighting the significant demand for regulated crypto products.

IBIT’s price, currently at $60.72, reflects a daily decline of 0.69%. However, it has posted a 5.64% gain over the last five trading days and is up 10.61% year-to-date, aligning with Bitcoin’s recent strength. Over a one-year period, the ETF has appreciated by 73.09%, outperforming traditional equity indices and solidifying its position as a favored institutional proxy for Bitcoin exposure.

The rapid growth of IBIT indicates strong institutional and retail interest in digital gold within a regulated framework. BlackRock executives note that a Bitcoin ETF opens new client segments, and IBIT’s fee revenue outpacing IVV marks a clear win for BlackRock’s strategy. The ETF’s design allows investors to gain Bitcoin exposure via traditional brokerage accounts, mitigating custody, tax, and liquidity complexities. Its replication method is physical, tracking the CME CF Bitcoin Reference Rate with passive management.

Technically, IBIT is forming a bullish flag pattern, consolidating below the critical $64 resistance zone. The price is currently holding above the 20-day EMA, suggesting a potentially bullish continuation if a breakout occurs. Volume compression near this resistance level signals accumulation, and traders are closely watching for confirmation through a high-volume breakout, which could initiate a measured move toward Fibonacci extension targets around $66.80–$69.50. Should the pattern fail, downside risk is contained near the $58–$57 support zone.

From a structural standpoint, IBIT offers a physically backed Bitcoin investment vehicle with $74.65 billion in AUM and $34.35 billion in net inflows over the past year. The ETF maintains a 0.25% expense ratio and trades near its net asset value, with a minor 0.08% premium. This structure provides investors with a straightforward and regulated way to access Bitcoin, contributing to its rapid growth and fee revenue success.