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

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The financial world is witnessing a historic shift as traditional investment giants increasingly embrace digital assets. At the forefront of this transformation is BlackRock, whose iShares Bitcoin Trust (IBIT) has not only captured unprecedented investor interest but has also surpassed its own S&P 500 ETF in revenue generation—despite managing significantly fewer assets.

With bitcoin trading near $109,500, IBIT has emerged as the fastest-growing ETF to reach $70 billion in assets under management. The fund recorded 15 consecutive days of net inflows before pausing on Tuesday, solidifying its dominance in the newly launched spot bitcoin ETF market. Over the past 18 months, IBIT has posted positive inflows in 17 of them—an extraordinary track record that underscores growing institutional confidence in crypto.

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Why IBIT Is Outperforming Legacy ETFs

Despite managing just a fraction of the assets compared to BlackRock’s iShares Core S&P 500 ETF (IVV), IBIT generates more annual revenue. According to Bloomberg calculations, IBIT brings in **$187.2 million per year** thanks to its 0.25% expense ratio. In contrast, IVV, which oversees roughly nine times more capital, earns $187.1 million annually with a much lower fee structure of just 0.03%.

This revenue parity highlights a critical trend: investors are willing to pay a premium for exposure to bitcoin, especially through regulated, exchange-traded products. The success of IBIT reflects both strong demand and BlackRock’s strategic positioning at the intersection of traditional finance and digital innovation.

Arkham Intelligence data reveals that BlackRock currently holds over 696,000 bitcoin, making it one of the largest institutional holders of the asset. This massive accumulation further signals long-term conviction in bitcoin’s value proposition as a store of wealth and hedge against macroeconomic uncertainty.

The Convergence of Traditional Finance and On-Chain Economy

Beyond ETFs, another significant development is unfolding in the stablecoin sector, where legacy financial frameworks are merging with blockchain infrastructure.

Ripple recently filed an application with the U.S. Office of the Comptroller of the Currency (OCC) for a national bank charter. If approved, Ripple’s stablecoin, RLUSD, would operate under dual oversight—from both the OCC and the New York Department of Financial Services (NYDFS), which already authorized RLUSD’s public launch in late 2024.

“True to our long-standing compliance roots, @Ripple is applying for a national bank charter from the OCC. If approved, we would have both state (via NYDFS) and federal oversight, a new (and unique!) benchmark for trust in the stablecoin market,” said Ripple CEO Brad Garlinghouse on X.

This move coincides with Ripple’s subsidiary, Standard Custody & Trust Company, applying for a Federal Reserve master account. Such access would allow Ripple to hold RLUSD reserves directly with the Fed, enhancing transparency and security—a major step toward mainstream adoption.

Similarly, Circle, issuer of the second-largest stablecoin USDC, submitted its own national bank charter application to the OCC just days later. These parallel moves by industry leaders signal a broader trend: crypto-native firms are seeking full regulatory integration to build trust and scalability.

Currently, Anchorage Digital remains the only U.S.-based crypto firm to have successfully obtained an OCC charter, setting a high bar for compliance and operational rigor.

👉 Explore how regulated financial innovation is driving the next phase of digital asset growth.

Bitcoin Miners Ride the Wave of Institutional Adoption

The momentum isn’t limited to Wall Street giants. Bitcoin mining companies are also capitalizing on rising prices and expanding energy partnerships.

Hut 8, one of the largest corporate bitcoin holders with over 10,273 BTC, recently signed a five-year power agreement with Ontario’s Independent Electricity System Operator (IESO). The deal secures 310 MW of capacity across four sites—Iroquois Falls, Kingston, Kapuskasing, and North Bay—ensuring stable operations amid growing energy demands.

Following the announcement, Hut 8 shares surged nearly 15%, reflecting investor optimism about sustainable mining models. This comes shortly after American Bitcoin—a Hut 8 majority-owned entity backed by Eric Trump—raised $220 million from accredited investors to accelerate its bitcoin accumulation strategy.

Other miners like Riot Platforms, MARA Holdings, and CleanSpark are also seeing gains as bitcoin pushes toward the symbolic $110,000 threshold—a level not seen since early June.

Coinbase Expands Ecosystem Through Strategic Acquisitions

On the exchange front, Coinbase continues to strengthen its institutional offerings through strategic acquisitions. In July, it announced the purchase of Liquifi, a leading token management platform, though financial terms were not disclosed.

Greg Tusar, VP of Institutional Product at Coinbase, emphasized that launching tokens remains “too hard” due to legal, tax, and compliance hurdles. By integrating Liquifi’s capabilities in cap table management, vesting schedules, and regulatory compliance, Coinbase aims to streamline token creation for startups and Web3 developers.

“Our vision is a world where launching a token is easier, faster, and more global than issuing traditional startup equity.”

This acquisition follows two major moves earlier in 2025: the $2.9 billion purchase of Deribit, the largest crypto options platform, and the integration of Spindl, an on-chain advertising and attribution tool. Together, these moves position Coinbase as a full-stack ecosystem provider—not just an exchange.

Market Volatility and Meme Coin Sensitivity

While institutional adoption accelerates, retail-driven markets remain volatile. A renewed public feud between Elon Musk and Donald Trump has triggered declines in associated meme coins.

Dogecoin (DOGE), long favored by Musk, dropped nearly 3% over 24 hours following Musk’s criticism of a proposed government spending bill labeled “big, beautiful” by Trump.

Meanwhile, $TRUMP, the Trump-themed meme coin, fell 2.5% in the same period and is down 88% from its peak on January 19, 2025—highlighting the speculative nature and sensitivity of politically tied digital assets.

Frequently Asked Questions (FAQ)

Q: How can IBIT earn more than IVV with fewer assets?
A: IBIT charges a higher expense ratio (0.25%) compared to IVV (0.03%). Even though IVV manages about nine times more assets, IBIT’s premium pricing model allows it to generate nearly identical revenue.

Q: What does a national bank charter mean for Ripple or Circle?
A: It means federal regulatory oversight, greater legitimacy, and enhanced operational capabilities—such as holding reserves at the Federal Reserve—making their stablecoins more transparent and trustworthy.

Q: Why are bitcoin miners benefiting from energy deals?
A: Stable power agreements reduce operational risks and costs, enabling miners to scale efficiently while maintaining profitability during price fluctuations.

Q: Is BlackRock’s bitcoin holdings safe from market volatility?
A: While no investment is immune to price swings, BlackRock’s long-term strategy and diversified institutional base suggest a resilient approach focused on strategic accumulation rather than short-term trading.

Q: How do acquisitions like Liquifi impact everyday crypto users?
A: They lead to better tools for token creation and management, which can result in more compliant, user-friendly projects entering the market—ultimately improving ecosystem quality.

👉 Stay ahead of evolving crypto regulations and institutional trends shaping tomorrow’s finance.

Core Keywords

This evolving landscape demonstrates that digital assets are no longer fringe investments—they’re central to the future of finance. As giants like BlackRock, Coinbase, Ripple, and Circle redefine boundaries, investors must stay informed to navigate opportunities across both traditional and decentralized ecosystems.