In just over a year since launch, the fund has generated roughly $244–$245 million in annualized revenue, driven by steady inflows and a 0.25% management fee. This rapid rise has made IBIT one of the most lucrative products in BlackRock’s lineup.
IBIT reached its current size in about 435 days. Based on reports, that pace is far faster than many legacy funds took to build similar scale — Vanguard’s S&P 500 ETF (VOO) took roughly 2,011 days to hit $100 billion.
Market watchers have said IBIT may become the fastest ETF ever to reach $100 billion. Bloomberg analyst Eric Balchunas describes this ascent as “absurd.”
The math is simple: large flows plus rising bitcoin prices push AUM higher, which then boosts fee income. That loop has been powerful this year.
Based on market coverage, more than half of ETF inflows into the US market went into IBIT, underscoring its lure for many investors. When money pours in at this scale, the demand for the underlying bitcoin is pushed higher, and price moves can be amplified.
Some traders watch these inflow days closely because similar spikes have come near local price tops in the past.
Reports have disclosed a few clear risks for investors and for the broader market. One is the premium or discount that can form between an ETF’s market price and its Net Asset Value; that gap can widen during stressed moments.
Another is regulation: rules in the US or abroad could change, and that could affect flows. Competition is also a factor — fee pressure from rival issuers could alter revenue projections.
Finally, rapid growth is easier at the start; sustaining this pace will be harder as the base becomes larger.
IBIT’s structure relies on daily creation and redemption by authorized participants, and it uses a major custody setup for the bitcoin holdings.
According to filings and industry reports, BlackRock is exploring product extensions such as a bitcoin “premium income” ETF that would aim to generate yield through options strategies, and it has taken steps like filing to create supporting trust entities. Those moves suggest the firm is planning for multiple ways to serve demand.
Featured image from Newscom, chart from TradingView
