BlackRock’s pricey cryptocurrency ETFs surpass conventional funds as investor demand surges

BlackRock’s

and exchange-traded funds (ETFs) have brought in more than $260 million in revenue over the past two years, making them the company’s leading earners. The iShares Bitcoin Trust (IBIT) produced $218 million in its initial year alone, while the Ethereum-focused ETHA fund generated $42 million, according to Omar Kanji from Dragonfly. This swift ascent highlights BlackRock’s commanding presence in the market, with these ETFs holding a substantial share and attracting over $100 billion in total assets BlackRock’s Crypto ETFs Revenue Surpass $260 Million Annually [ 1 ].

The impressive performance of these products is fueled by a 0.25% fee, which is much higher than the 0.03%–0.1% fees typical for most of BlackRock’s conventional ETFs, such as the flagship iShares Core S&P 500 ETF (IVV). Even though IBIT oversees assets that are only about one-ninth the size of IVV, its steeper fee brought in $187.2 million in fees by July 2025—slightly more than IVV’s $187.1 million. This suggests robust demand from both institutions and individual investors for crypto exposure, with many willing to accept higher fees for access to Bitcoin and Ethereum BlackRock Bitcoin ETF drives more revenue than its … [ 2 ].

Market trends further emphasize the impact of these ETFs.

, which launched in January 2024, has seen $60.6 billion in net new investments, making up 73% of all U.S. Bitcoin ETF inflows and ranking it as the 22nd largest ETF worldwide by assets. Meanwhile, ETHA, which began in July 2024, has drawn in $13.4 billion, accounting for 72.5% of all U.S. Ethereum ETF inflows. These numbers reflect a rising level of trust from institutional investors in crypto, with BlackRock’s ETFs serving as key entry points for capital into this sector BlackRock’s Crypto ETFs Revenue Surpass $260 Million Annually [ 1 ].

BlackRock’s crypto ETFs have also altered the company’s overall business approach. In the second quarter of 2025, these funds represented 16.5% of all ETF inflows at BlackRock, up from less than 3% in the previous quarter. Revenue from digital asset fees climbed to $40 million, marking an 18% jump from the first quarter. CEO Larry Fink credits this momentum to the firm’s expansion into private markets, digital assets, and data-centric strategies, as well as new international alliances like Jio

in India BlackRock Hits Record $12.5 Trillion AUM as Crypto ETFs Explode [ 3 ].

Experts highlight that BlackRock’s ETFs have intensified Bitcoin’s supply imbalance. For example, in 2025, ETFs and corporate treasuries purchased $28.22 billion worth of Bitcoin, significantly outstripping the $7.85 billion in new coins produced by miners. This disparity has strengthened the narrative of Bitcoin scarcity, with IBIT alone holding over 700,000 BTC as of July 2025. The company’s achievements have also led to speculation about additional crypto ETF approvals, with Bloomberg analysts estimating a 90–95% probability for spot ETFs for

, , and by the end of the year BlackRock’s Tokenized ETFs Explained: Everything You … [ 4 ].