Categories: Crypto

BlackRock’s spot Bitcoin ETF IBIT Surpasses S&P 500 ETF Annual Revenue

BlackRock’s spot Bitcoin ETF, trading under the ticker IBIT, have overtaken BlackRock flagship S&P 500 ETF (IVV) in annual revenue generation. Despite being a fraction of its size in terms of assets under management, IBIT’s surge is pivotal. It indicates an increase in institutional demand for regulated Bitcoin exposure.

According to 2 July 2025 Bloomberg report, IBIT’s higher expense ratio of 0.25% has propelled it ahead of the iShares Cor S&P 500 ETF IVV.

Notably, IVV charge a nominal 0.03% fee in terms of annual fee income. So the higher fee structure of IBIT, combined with the surging interest in Bitcoin as an asset class, has given BlackRock a powerful new revenue engine.

“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 2 July 2025.

Importantly, IBIT is projected to generate over $187 million in annual fees.

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Standard Chartered’s Bitcoin Outlook: Poised for a Historic Rally?

According to Standard Chartered’s latest market outlook, Bitcoin is poised for its strongest dollar rally in history in the second half of 2025. Bitcoin is expected to reach $135,000 before the close of September, according to Standard Chartered.

Bitcoin

Price

Market Cap

BTC

$2.17T

24h7d30d1yAll time

Geoff Kendrick, Standard Chartered’s head of digital asset research said, “Thanks to increased investor flows, we believe BTC has moved beyond the previous dynamic whereby prices fell 18 months after a ‘halving’ cycle.”

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If this forecast materialises, the appeal of spot Bitcoin ETFs like IBIT could grow even further.

“Strong inflows drove Q2 price gains,” added Kendrick, “US spot ETFs saw inflows of $12.4bn (120,000 BTC) during the quarter, and Bitcoin treasury companies added 125,000 BTC.”

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BTC ETFs See Interrupted Inflow Streak Amid Bearish BTC Price

However, BlackRock’s IBIT is clearly an exception.

The relentless inflow streak into US spot Bitcoin ETFs came to an abrupt halt amidst renewed bearish momentum and political headwinds. On 1 July 2025, the 12 US-listed spot Bitcoin ETFs collectively recorded $342.25 million in net outflows. This marks the end of a robust 15 day run that had seen $4.73 billion pour into US spot Bitcoin ETFs since mid-June.

Fidelity’s FBTC saw the largest withdrawal with $172.73 million in outflows. Grayscale’s GBTC saw $119.51 million redeemed.

ARK21Shares’ ARKB recorded $27.03 million in outflows. Bitwise’s BITB registered $22.98 million in redemptions.

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Explore: Bitcoin ETFs See Interrupted Inflow Streak Amid Bearish BTC Price

Key Takeaways

IBIT was launched at the beginning of last year, alongside a wave of spot Bitcoin ETFs. They sought to provide investors with direct exposure to Bitcoin’s spot price within a regulated framework.

Since its debut, IBIT has quickly established itself as the market leader among spot BTC ETFs. Recently, it reached a new all-time high in AUM and solidifying its place as the most successful ETF tracking Bitcoin’s spot price.