A Record-Breaking Revenue Stream
According to multiple financial reports, BlackRock’s iShares Bitcoin Trust (IBIT) has indeed become the firm’s most profitable ETF in terms of annual revenue, surpassing funds that have been operating for over two decades.
The key figures supporting this are:
-
Annual Revenue: IBIT generates an estimated $244.5 million in annual revenue for BlackRock.
-
Assets Under Management (AUM): The fund has seen explosive growth, with its AUM reaching $98.47 billion as of early October 2025, putting it “a hair away” from the $100 billion mark.
-
Fee Structure: This revenue is driven by a 0.25% sponsor fee on the fund’s massive and rapidly growing AUM.
This profitability highlights immense demand, as noted by Pratik Kala of Apollo Crypto: “IBIT being the most profitable product for the largest issuer of ETFs in the world, clearly shows the size of the demand from institutions and retail”.
Unprecedented Growth and Institutional Demand
The speed of IBIT’s ascent is what makes it truly historic. It is on track to hit $100 billion in AUM in approximately 435 days since its launch in January 2024. This shatters the previous record held by the Vanguard S&P 500 ETF (VOO), which took 2,011 days to achieve the same feat.
This record-breaking growth is fueled by sustained institutional inflows. The fund has seen inflows in all but one of its first 18 months. Recently, on October 6, 2025, U.S. spot bitcoin ETFs attracted a massive $1.21 billion in a single day, with BlackRock’s IBIT alone accounting for $970 million of that total. This reflects a powerful and ongoing institutional bid for Bitcoin through regulated channels.
A Signal for Institutional Strategy
For corporate treasurers and institutional investors, this milestone is significant. The success of IBIT is a strong market signal that validates Bitcoin as a substantial asset class for mainstream institutional portfolios. It demonstrates that established financial giants are not only participating in but are also profiting significantly from the crypto space, which may influence risk tolerance and allocation frameworks across the industry.
The profitability stems from a combination of high demand and a higher fee structure (0.25%) compared to traditional equity ETFs (which can be as low as 0.03%). This shows that institutions are willing to pay a premium for regulated, convenient exposure to Bitcoin, a sentiment that could shape future product offerings and investment strategies.