IBIT Becomes BlackRock’s Most Lucrative ETF with Ease

BlackRock’s spot Bitcoin exchange-traded fund has accumulated nearly $245 million in fees over the past year, positioning it as the firm’s most lucrative ETF by a significant margin.

The iShares Bitcoin Trust ETF (IBIT) now surpasses both the iShares Russell 1000 Growth ETF (IWF) and the iShares MSCI EAFE ETF (EFA) by $25 million in annual revenue, as highlighted by BlackRock ETF analyst Eric Balchunas in a post on X this Monday.

IBIT became BlackRock’s top-performing ETF when it overtook IWF and EFA in mid-July, as indicated in previous posts by Balchunas showing.

Balchunas mentioned that every other BlackRock ETF in the top 12 by fee revenue has been operational for over a decade, while noting that IBIT is now merely “a hair” — or $2.2 billion — away from achieving the $100 billion milestone despite launching only 22 months ago.

BlackRock earns revenue from IBIT through management fees, which stand at 0.25% of its total assets under management. This revenue is expected to rise along with investor demand and Bitcoin’s (BTC) price increase.

IBIT is the leading spot Bitcoin fund in the US. Last week, the fund represented over $1.8 billion of the $3.2 billion total inflows into US spot Bitcoin ETFs, marking its second-best week on record. Bitcoin surpassed the $125,000 threshold for the first time over the weekend.

The growing interest in spot Bitcoin ETFs has also been fueled by a more favorable regulatory stance toward crypto from Washington under the Trump administration, which aims to establish America as the “crypto capital of the world.”

IBIT poised to be the fastest ETF to reach $100 billion

With $97.8 billion in net assets amassed in just 435 days, IBIT is set to outpace Vanguard’s S&P 500 index fund (VOO), becoming the first ETF to cross the $100 billion mark. VOO reached this milestone in 2,011 days (approximately 5.5 years).

BlackRock is exploring a new revenue avenue in Bitcoin

Late last month, BlackRock applied to establish a Delaware trust company for its proposed Bitcoin Premium Income ETF, indicating its intent to expand its Bitcoin product line.