BlackRock’s Bitcoin ETF becomes most profitable fund ever — nears $100 billion in record-breaking run

BlackRock’s iShares Bitcoin Trust ETF (IBIT) has rewritten the record books. In just 21 months since its launch, the world’s largest asset manager’s first spot Bitcoin ETF has become its most profitable exchange-traded fund, generating nearly $245 million in annual fees and managing close to $100 billion in assets — the fastest any BlackRock ETF has ever achieved this milestone.

Launched less than two years ago, IBIT has transformed from a bold crypto experiment into a cornerstone of BlackRock’s product lineup. The fund now surpasses legacy giants like the iShares Russell 1000 Growth ETF (IWF) and the iShares MSCI EAFE ETF (EFA) — both over two decades old — by more than $25 million in yearly revenue, according to Bloomberg ETF analyst Eric Balchunas.

With $98.5 billion in assets under management (AUM) and a 0.25% management fee, IBIT generates an estimated $244.5 million in annual revenue for BlackRock. Balchunas noted that IBIT is now just “a hair” — or about $2.2 billion — away from crossing the $100 billion threshold, a feat that would make it the fastest-growing ETF in global history.

For comparison, Vanguard’s S&P 500 ETF (VOO) took over five years (2,011 days) to reach the same milestone, while IBIT has done so in just 435 days.

Why are investors choosing IBIT

The fund’s meteoric growth underscores the mainstream adoption of Bitcoin as a legitimate asset class. Institutional and retail investors alike are increasingly using IBIT to gain regulated exposure to Bitcoin without directly owning the cryptocurrency.

Bitcoin’s recent rally — breaching $125,000 for the first time and now hovering around $124,500 — has further boosted inflows. Last week alone, IBIT attracted $1.8 billion out of the $3.2 billion flowing into U.S. spot Bitcoin ETFs, marking its second-largest weekly inflow ever.

Globally, crypto investment products pulled in nearly $6 billion, according to CoinShares, reflecting renewed investor confidence following Washington’s pro-crypto pivot under the Trump administration, which has promised to make the U.S. the “crypto capital of the world.”

BlackRock’s crypto strategy

BlackRock is already building on IBIT’s success. The firm has filed to register a Delaware trust company for a new proposed product — the Bitcoin Premium Income ETF. This new ETF would sell covered call options on Bitcoin futures, enabling investors to earn regular premium income while trading away some upside potential.

The move signals BlackRock’s strategy to expand its Bitcoin-linked offerings while staying focused on Bitcoin and Ether (ETH) exposure rather than joining the altcoin ETF rush.

Notably, Harvard’s endowment fund recently invested $116 million in IBIT, underscoring growing institutional confidence in Bitcoin as an asset class.

IBIT’s impact

IBIT’s rise marks a turning point for both crypto investing and traditional finance. It is now BlackRock’s top-earning ETF, overtaking all others among its top 12 revenue generators — each of which has been active for over a decade.

The ETF’s success also highlights the synergy between traditional asset management and digital innovation. It has given institutions a compliant vehicle for Bitcoin exposure while unlocking a powerful new revenue stream for BlackRock.

As analysts point out, the combination of Bitcoin’s scarcity, regulatory clarity, and rising global adoption may keep IBIT’s momentum intact. Despite short-term corrections, its diverse investor base — spanning retail investors, hedge funds, and endowments — could help stabilize crypto markets going forward.

In less than two years, BlackRock’s IBIT has become a case study in financial evolution — turning a once-speculative digital asset into Wall Street’s most profitable investment vehicle. As it nears the $100 billion milestone, IBIT isn’t just leading the ETF race — it’s redefining how traditional finance engages with the future of money.

BlackRock, the world’s largest asset manager, which has partnered with Reliance-led Jio Financial Services in India, provides mutual funds, ETFs, and closed-end funds. BlackRock manages over $12 trillion in assets globally.  The funds have shown strong 2025 performance across major asset classes. From its flagship iShares ETFs to high-dividend equity mutual funds and income-oriented closed-end trusts, BlackRock has delivered consistent returns amid global market volatility and shifting macroeconomic cycles.