BlackRock has quietly turned its early foray into crypto into a lucrative venture, earning more than $260 million in annual revenue from digital asset products in less than two years. The windfall stems largely from the rapid success of its spot Bitcoin and Ethereum exchange-traded funds (ETFs), which dominate their respective markets and now rank among the most profitable products in the firm’s portfolio. How BlackRock Quietly Built One of Its Most Profitable Businesses Through Crypto ETFs According to Dragonfly partner Omar Kanji’s data, BlackRock’s iShares Bitcoin Trust (IBIT) generated about $218 million in fees at a 0.25% commission rate during its first year. Its Ethereum fund, ETHA, added another $42 million under the same fee structure. Kanji emphasized that the milestone is striking not only because of the size of the revenue. He noted that achieving it within a year of launch underscores how quickly BlackRock has entrenched itself in crypto finance. The success of these funds reflects a broader trend: investors are paying significantly more to access crypto products compared with traditional ETFs. While IBIT and ETHA charge 0.25% in annual fees, most of BlackRock’s established ETFs—including its flagship IVV fund—charge between 0.03% and 0.1%. This disparity highlights how institutional demand for Bitcoin and Ethereum exposure has translated into premium pricing power for the asset manager. Meanwhile, that strategy has coincided with investor enthusiasm for the market class. Launched in January 2024, IBIT has grown into the largest crypto ETF globally and now ranks as the 22nd largest ETF overall by assets, according to VettaFi. Additionally, SoSo Value data shows IBIT has attracted $60.6 billion in net inflows, representing nearly three-quarters of all US Bitcoin ETF flows. Today, it manages more than $88 billion in assets, cementing its role as the industry’s flagship product. BlackRock’s IBIT Flows. Source: SoSo Value Data On the other hand, BlackRock’s Ethereum product, ETHA, has also become a force in its category. Since its July 2024 debut, ETHA has drawn $13.4 billion in net inflows, giving it a commanding 72.5% share of all US ETH ETF flows.BlackRock has quietly turned its early foray into crypto into a lucrative venture, earning more than $260 million in annual revenue from digital asset products in less than two years. The windfall stems largely from the rapid success of its spot Bitcoin and Ethereum exchange-traded funds (ETFs), which dominate their respective markets and now rank among the most profitable products in the firm’s portfolio. How BlackRock Quietly Built One of Its Most Profitable Businesses Through Crypto ETFs According to Dragonfly partner Omar Kanji’s data, BlackRock’s iShares Bitcoin Trust (IBIT) generated about $218 million in fees at a 0.25% commission rate during its first year. Its Ethereum fund, ETHA, added another $42 million under the same fee structure. Kanji emphasized that the milestone is striking not only because of the size of the revenue. He noted that achieving it within a year of launch underscores how quickly BlackRock has entrenched itself in crypto finance. The success of these funds reflects a broader trend: investors are paying significantly more to access crypto products compared with traditional ETFs. While IBIT and ETHA charge 0.25% in annual fees, most of BlackRock’s established ETFs—including its flagship IVV fund—charge between 0.03% and 0.1%. This disparity highlights how institutional demand for Bitcoin and Ethereum exposure has translated into premium pricing power for the asset manager. Meanwhile, that strategy has coincided with investor enthusiasm for the market class. Launched in January 2024, IBIT has grown into the largest crypto ETF globally and now ranks as the 22nd largest ETF overall by assets, according to VettaFi. Additionally, SoSo Value data shows IBIT has attracted $60.6 billion in net inflows, representing nearly three-quarters of all US Bitcoin ETF flows. Today, it manages more than $88 billion in assets, cementing its role as the industry’s flagship product. BlackRock’s IBIT Flows. Source: SoSo Value Data On the other hand, BlackRock’s Ethereum product, ETHA, has also become a force in its category. Since its July 2024 debut, ETHA has drawn $13.4 billion in net inflows, giving it a commanding 72.5% share of all US ETH ETF flows.