BlackRock Bitcoin ETF earns more than its flagship S&P 500 fund

BlackRock’s Bitcoin ETF is earning more in annual fees than the firm’s signature S&P 500 fund, despite having an expense ratio almost nine times higher.

BlackRock, the world’s largest asset manager, is now earning more in annual fees from its spot Bitcoin exchange-traded fund than its flagship S&P 500 fund, according to a recent report.

“IBIT overtaking IVV in annual fee revenue is reflective of both the surging investor demand for Bitcoin and the significant fee compression in core equity exposure,” NovaDius Wealth Management president Nate Geraci told Bloomberg on Wednesday. 

With an expense ratio of 0.25% and around $75 billion in assets under management (AUM), BlackRock’s iShares Bitcoin (BTC) ETF (IBIT) has generated $187.2 million in annual fees, approximately $100,000 more than its iShares Core S&P 500 ETF (IVV). 

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