BlackRock’s Spot Bitcoin ETF IBIT

BlackRock’s spot Bitcoin exchange-traded fund (ETC), IBIT, is now its third-highest revenue-generating ETF, just 18 months post-launch, as reported by Bloomberg senior ETF analyst Eric Balchunas.

Revenue Milestone

Strategy Chairman Michael Saylor predicts that IBIT will soon become BlackRock’s top revenue-generating ETF. Currently, IBIT boasts approximately $76 billion in assets under management and an expense ratio of 0.25%, estimating an annual revenue of around $191 million.

IBIT lags slightly behind BlackRock’s iShares Russell 1000 Growth ETF (IWF), generating about $211 million, and the iShares MSCI EAFE ETF (EFA), which produces around $207 million. Notably, IBIT is only $9 billion in assets away from surpassing IWF.

Balchunas commented, > “Just another insane stat for a 1.5-year-old (literally an infant) ETF.”

Launch and Early Success

Launched in January 2024 alongside other approved spot Bitcoin ETFs by the U.S. Securities and Exchange Commission, IBIT quickly became the fastest ETF to reach $2 billion in inflows, breaking records for first-week subscriptions.

By its six-month mark, IBIT grew to over $50 billion in assets, reflecting increasing institutional and retail demand for regulated Bitcoin exposure.

Industry Impact

IBIT’s performance signifies the growing acceptance of Bitcoin in traditional investment portfolios, similar to the evolution of gold ETFs over two decades. It has gained traction among financial advisors, corporate treasuries, and hedge funds seeking liquid, regulated Bitcoin exposure without the complications of direct custody.