BlackRock has seamlessly transformed its initial venture into crypto into a successful business, generating over $260 million in annual revenue from digital asset products in under two years.
This profit largely comes from the swift success of its spot Bitcoin and Ethereum exchange-traded funds (ETFs), which lead their markets and now rank among the most lucrative products in the firm’s offerings.
How BlackRock Quietly Built One of Its Most Profitable Businesses Through Crypto ETFs
According to data from Dragonfly partner Omar Kanji, BlackRock’s iShares Bitcoin Trust (IBIT) amassed approximately $218 million in fees at a 0.25% commission rate within its inaugural year. Its Ethereum fund, ETHA, contributed an additional $42 million under the same fee structure.
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Kanji pointed out that this achievement is particularly noteworthy not just due to the revenue size, but because it highlights how swiftly BlackRock has embedded itself within the crypto finance sector.
The success of these funds illustrates a wider trend: investors are willing to pay significantly more for crypto products than traditional ETFs.
While IBIT and ETHA levy a 0.25% annual fee, most of BlackRock’s established ETFs—including its flagship IVV fund—charge between 0.03% and 0.1%.
This difference underscores how institutional demand for Bitcoin and Ethereum exposure has allowed the asset manager to command premium pricing.
Furthermore, this strategy aligns with investor enthusiasm for the asset class.
Launched in January 2024, IBIT has emerged as the largest crypto ETF worldwide and now ranks as the 22nd largest ETF overall by assets, according to VettaFi.
Additionally, data from SoSo Value indicates that IBIT has attracted $60.6 billion in net inflows, accounting for nearly three-quarters of all US Bitcoin ETF flows. Today, it manages over $88 billion in assets, solidifying its position as the industry’s flagship product.
In contrast, BlackRock’s Ethereum product, ETHA, has also become a significant player in its category.
Since its launch in July 2024, ETHA has attracted $13.4 billion in net inflows, securing a robust 72.5% share of all US ETH ETF flows.
