Recent data from Bloomberg shows that BlackRock's iShares Bitcoin Trust ETF (IBIT) is generating more fee revenue than the standard iShares Core S&P 500 ETF (IVV).
iShares Bitcoin Trust ETF Revenue
IBIT generates an annual fee revenue of $187.2 million, slightly above the $187.1 million earned by IVV. IBIT charges a 0.25% expense ratio, while IVV only charges 0.03%. Despite being nearly nine times smaller, IBIT has drawn steady inflows over 17 of the last 18 months from both retail investors and large institutional clients.
Bitcoin Market Influence on ETFs
Since the launch of Bitcoin ETFs in January 2024, IBIT has captured $52 billion out of a total of $54 billion in inflows across all Bitcoin ETFs, giving it over 55% of the total market share. This makes IBIT one of the top 20 ETFs by trading volume. Analysts note this indicates a high demand for streamlined access to Bitcoin for investors without needing separate accounts.
Current Stability of Bitcoin Prices
However, despite the influx of capital, Bitcoin's price has been trading within a narrow range of $93,000 to $111,000 over the last two months. The current price is around $108,480, up 2.4%. This reduced volatility marks a shift in how Bitcoin is perceived, moving it from a speculative asset to a more stable investment vehicle.
The situation with the iShares Bitcoin Trust ETF highlights a new wave of interest in Bitcoin as an asset while the lower volatility suggests changes in investor behavior seeking steady returns.
