BlackRock’s IBIT Becomes Firm’s Most Profitable Fund, Nears $100 Billion Milestone

BlackRock’s iShares Bitcoin Trust, IBIT, has become the asset manager’s most profitable exchange-traded fund (ETF), generating nearly $245 million in fees over the past year. This is a remarkable achievement for a product that launched less than two years ago.

According to ETF analyst Eric Balchunas, IBIT has now surpassed the firm’s long-standing giants, the iShares Russell 1000 Growth ETF (IWF) and the iShares MSCI EAFE ETF (EFA), by around $25 million in annual revenue. 

Balchunas shared the update on X on Monday, noting that IBIT claimed the top spot in mid-July and has maintained its lead since.

Fastest-Growing ETF in BlackRock’s History

What makes IBIT’s success extraordinary is its pace. Every other BlackRock ETF in the company’s top 12 by fee revenue has existed for more than a decade, yet IBIT, which launched just 22 months ago, is already on the verge of breaking the $100 billion asset mark. As of now, the fund holds approximately $97.8 billion in net assets — only $2.2 billion shy of the milestone.

IBIT generates revenue through a 0.25% management fee on assets under management, meaning its profitability scales directly with Bitcoin’s price and investor demand. With Bitcoin recently breaking past $125,000 for the first time, IBIT’s revenue has surged accordingly.

Last week alone, the fund accounted for $1.8 billion of the $3.2 billion in total inflows into U.S. spot Bitcoin ETFs, its second-largest week on record. Analysts attribute the surge in demand not only to Bitcoin’s rally but also to Washington’s friendlier tone toward crypto under the Trump administration, which has vowed to make the U.S. the “crypto capital of the world.”

BlackRock Eyes Next Bitcoin-Linked Fund

Balchunas added that IBIT is on track to become the fastest ETF ever to reach $100 billion, surpassing Vanguard’s S&P 500 index fund (VOO), which took more than 2,000 days to hit the same level. IBIT could do it in under 450 days, setting a historic precedent for the ETF industry.

Meanwhile, BlackRock appears eager to expand its Bitcoin exposure. Late last month, the firm filed to register a Delaware trust company for a proposed Bitcoin Premium Income ETF, which would sell covered call options on Bitcoin futures to generate yield. Though this strategy may limit upside potential compared to IBIT, it underscores BlackRock’s intent to diversify its crypto-related offerings.

For now, the U.S. Securities and Exchange Commission (SEC) has paused reviews of new crypto ETF applications until the federal government reopens, but industry watchers say BlackRock’s dominance in the Bitcoin ETF space is already firmly established.