BlackRock’s Bitcoin ETF Becomes Most Profitable Fund
BlackRock’s spot Bitcoin ETF, the iShares Bitcoin Trust (IBIT), has generated nearly $245 million in fees over the past year. The fund is close to reaching $100 billion in assets under management (AuM). It launched less than two years ago.
IBIT now earns $25 million more annually than BlackRock’s iShares Russell 1000 Growth ETF (IWF) and iShares MSCI EAFE ETF (EFA). BlackRock ETF analyst Eric Balchunas highlighted this growth.
IBIT Nears $100 Billion Faster Than Any Other ETF
With $97.8 billion in net assets after 435 days, IBIT is on track to become the fastest ETF to reach $100 billion. Vanguard’s S&P 500 index fund (VOO) took over five years to hit the same milestone.
The ETF’s growth is driven by rising Bitcoin prices, currently around $124,005, and strong investor demand. Last week, IBIT accounted for over $1.8 billion of the $3.2 billion inflows into US spot Bitcoin ETFs.
BlackRock Explores New Bitcoin Revenue Opportunities
BlackRock is planning a Bitcoin Premium Income ETF. This fund would sell covered call options on Bitcoin futures to generate premium income. Unlike IBIT, it may limit some price gains.
Analyst Eric Balchunas noted BlackRock focuses on Bitcoin and Ethereum ETFs, not altcoins, for now. Meanwhile, the US Securities and Exchange Commission (SEC) has paused reviews of other crypto ETF applications, increasing attention on IBIT’s success.
