BlackRock’s Bitcoin ETF Outpaces S&P 500 Fund in Revenue

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In a striking shift within the asset management landscape, BlackRock’s iShares Bitcoin Trust (IBIT) is now generating more annual revenue than its flagship S&P 500 ETF (IVV)—despite managing significantly fewer assets. This development underscores the explosive growth and profitability of spot Bitcoin ETFs since their U.S. debut in early 2024.

With Bitcoin trading near $109,500, IBIT has rapidly amassed over $70 billion in assets under management, becoming the fastest ETF in history to reach that milestone. The fund recorded net inflows for 17 of the past 18 months, including a 15-day consecutive streak of capital inflows before pausing on Tuesday. This sustained investor demand has translated into impressive financial returns for BlackRock.

How IBIT Surpasses IVV in Revenue

Despite managing just a fraction of the assets compared to its traditional counterpart, IBIT's higher fee structure gives it a significant revenue edge. The Bitcoin ETF carries an expense ratio of 0.25%, yielding an estimated $187.2 million in annual fees, according to Bloomberg analysis.

In contrast, BlackRock’s iShares Core S&P 500 ETF (IVV), which oversees roughly nine times more assets, generates $187.1 million annually at a much lower 0.03% expense ratio. This narrow gap highlights how even relatively smaller crypto-focused funds can rival—or surpass—long-established equity ETFs in profitability due to premium pricing and strong market demand.

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This revenue shift reflects broader trends: digital assets are no longer speculative side bets but core components of diversified investment portfolios. As more institutional investors embrace Bitcoin through regulated vehicles like IBIT, the economic incentives for asset managers grow substantially.

BlackRock’s Massive Bitcoin Holdings

According to on-chain analytics platform Arkham Intelligence, BlackRock currently holds over 696,000 Bitcoin, making it one of the largest institutional holders globally. This position has been built primarily through IBIT’s inflows, where new shares are created in exchange for physical BTC deposited by authorized participants.

The scale of this accumulation underscores confidence in Bitcoin as a long-term store of value—often compared to “digital gold.” With such deep exposure, BlackRock’s strategic moves continue to influence market sentiment and set benchmarks for other financial giants considering crypto integration.

Convergence of Traditional Finance and On-Chain Economy

Beyond ETFs, major players in the cryptocurrency space are pushing deeper into regulated financial infrastructure, blurring the lines between decentralized networks and traditional banking.

Ripple Seeks National Bank Charter

Ripple has formally applied for a national bank charter from the U.S. Office of the Comptroller of the Currency (OCC)—a move that would bring its stablecoin, RLUSD, under federal oversight alongside existing state regulation by the New York Department of Financial Services (NYDFS). The NYDFS already approved RLUSD’s public launch in late 2024.

“If approved, we would have both state and federal oversight—a new (and unique!) benchmark for trust in the stablecoin market,” said Ripple CEO Brad Garlinghouse on X.

The application coincides with a Federal Reserve master account request from Ripple’s subsidiary, Standard Custody & Trust Company. If granted, this access would allow Ripple to hold RLUSD reserves directly with the Fed, enhancing transparency and security.

Circle Follows Suit

In parallel, Circle, issuer of the second-largest stablecoin USDC, also filed for a national bank charter with the OCC. These dual applications signal a strategic pivot toward full regulatory compliance and institutional legitimacy.

Currently, Anchorage Digital remains the only U.S.-based crypto firm with an OCC-issued national bank charter. Should Ripple and Circle succeed, they could redefine how stablecoins operate within the formal financial system—offering greater accountability while expanding use cases across payments, lending, and DeFi.

Bitcoin Miners Rally Amid Energy Deals and Price Momentum

The broader Bitcoin ecosystem is also seeing momentum beyond Wall Street giants.

Hut 8 Secures Major Energy Deal

Bitcoin miner Hut 8 surged nearly 15% after announcing a five-year power agreement with Ontario’s Independent Electricity System Operator (IESO). The deal secures 310 MW of generation capacity across four sites: Iroquois Falls, Kingston, Kapuskasing, and North Bay.

As the ninth-largest corporate Bitcoin holder with 10,273 BTC, Hut 8 continues to strengthen its operational foundation while accumulating digital assets. This comes shortly after its majority-owned subsidiary, American Bitcoin, raised $220 million from accredited investors to advance its Bitcoin acquisition strategy.

Other miners like Riot Platforms, MARA Holdings, and CleanSpark are also experiencing gains as Bitcoin retests the $110,000 psychological barrier—a level not seen since June 9.

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Coinbase Expands Institutional Offerings Through Acquisition

On the exchange front, Coinbase announced the acquisition of Liquifi, a leading token management platform. While financial terms were not disclosed, the move strengthens Coinbase’s ability to support early-stage Web3 projects with cap table management, vesting schedules, and compliance tools.

“Launching tokens is too hard,” admitted Greg Tusar, VP of Institutional Product at Coinbase. “Legal, tax, and compliance challenges create unnecessary friction.” He added that Coinbase aims to make token creation “easier, faster, and more global than issuing traditional startup equity.”

This follows previous acquisitions:

These strategic moves position Coinbase as a full-service partner for blockchain builders—from fundraising to trading.

Meme Coins React to Renewed Trump-Musk Feud

Not all crypto sectors are rising. A resurgence of tension between Elon Musk and Donald Trump has triggered sell-offs in politically themed meme coins.

The fallout stems from Musk’s public criticism of a legislative proposal dubbed the “big, beautiful bill,” which Trump supports. The spat has reignited political narratives in the crypto community, reminding investors of the volatility tied to celebrity-driven digital assets.

Frequently Asked Questions (FAQ)

Q: Why does IBIT generate more revenue than IVV despite smaller assets?
A: IBIT charges a higher expense ratio (0.25%) compared to IVV (0.03%). Even with fewer assets, the premium pricing results in slightly higher annual fees.

Q: What is a national bank charter and why do crypto firms want one?
A: A national bank charter allows firms to operate as federally regulated banks. For crypto companies like Ripple and Circle, it provides legitimacy, access to banking services like Fed accounts, and stronger regulatory alignment.

Q: How does holding Bitcoin reserves benefit companies like Hut 8?
A: By holding Bitcoin long-term, miners can capitalize on price appreciation while using mining operations as a low-cost acquisition method—effectively turning energy into appreciating digital assets.

Q: Is Coinbase becoming a Web3 infrastructure company?
A: Yes. Through acquisitions like Liquifi and Spindl, Coinbase is expanding beyond trading into developer tools, compliance solutions, and capital formation platforms—supporting the full lifecycle of blockchain startups.

Q: Are meme coins reliable investments?
A: Generally no. Meme coins like DOGE or $TRUMP are highly speculative and driven by social sentiment rather than fundamentals. They often experience sharp rallies and steep declines based on news or celebrity influence.

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