Bitcoin ETF: The New BlackRock Cash Cow? 🤑

Well, well, well, who would have thought that Michael Saylor, the co-founder of Strategy, would be the one to predict the next big thing in the world of ETFs? He’s saying that the iShares Bitcoin Trust ETF (IBIT) is on track to become the biggest moneymaker among BlackRock’s vast ETF empire. 🚀

And you know what? Eric Balchunas, the senior ETF analyst at Bloomberg, isn’t exactly disagreeing. He pointed out that IBIT is already the third-highest revenue-generating ETF for the New York-headquartered giant, raking in a cool $191 million. 🤑

Launched last year, this ETF has been a real sensation, zooming past 1,195 other funds offered by BlackRock. It’s like the Usain Bolt of ETFs, only it’s not just running fast; it’s also making a ton of money. 🏃‍♂️💰

So far, the fund has only seen one month of outflows (February 2025), but that’s not enough to slow it down. According to SoSoValue, the fund is sitting pretty with $76.31 billion in total net assets, which is more than three times the amount of Fidelity’s competing product at $22.05 billion. 🤷‍♀️

BlackRock earns a tidy 0.25% annually on the total assets under management (AUM) of the Bitcoin ETF. That fee covers all sorts of things like custody, portfolio management, marketing, and compliance costs. But here’s the kicker: they don’t earn a penny from the product’s trading volume. 🤷‍♂️

Now, the iShares Core S&P 500 ETF (IVV) might have a staggering $627 billion in total assets, but it’s lagging behind Bitcoin with $188 million due to its extremely low fee of just 0.03%. Talk about a budget-friendly option! 🤓

The iShares Russell 1000 Growth ETF (IWF) is currently in first place with $211 million, thanks to a moderate fee of 0.19%. But with the gap between IWF and IBIT being so significant, it’s not exactly a stretch to think that the Bitcoin ETF might just become BlackRock’s biggest revenue generator. 🤔

Read More

2025-07-04 00:01