According to recent reports, BlackRock, the world's largest asset manager, is earning more annually from its Bitcoin ETF than its flagship S&P 500 fund, indicating a surge in interest in the cryptocurrency market.
Increase in Bitcoin ETF Revenue
BlackRock's iShares Bitcoin ETF (IBIT), with an expense ratio of 0.25% and approximately $75 billion in assets under management, generated $187.2 million in annual fees, about $100,000 more than its iShares Core S&P 500 ETF (IVV). Despite IVV being launched in 2000 and managing approximately $624 billion in assets, it charges a significantly lower fee of just 0.03%.
Experts' Views on Bitcoin
Several crypto industry experts commented on the findings. Entrepreneur Anthony Pompliano stated, 'Bitcoin is now getting Wall Street's full, undivided attention.' Chief Financial Officer of Strive Funds, Ben Pham, noted that Bitcoin will be 'the death' of active management and passive indexation portfolios.
Market Dynamics and Trading Close
IBIT closed the trading day on Wednesday at $62.41, up 4.31%. Bitcoin, in turn, rose by 2.82%, now trading at $108,660. Meanwhile, IVV closed the day at $623.42, up 0.44%. U.S.-based spot Bitcoin ETFs noted their first net outflow day after 15 consecutive days of inflows.
The current earnings from BlackRock's Bitcoin ETF highlight the growing institutional interest and investments in cryptocurrencies, which could have significant implications for traditional investment strategies.
