BlackRock Executive Says Bitcoin ETFs Are Now the Firm's Most Profitable Product Line

Source: ETHNews Original Title: BlackRock Executive Says Bitcoin ETFs Are Now the Firm’s Most Profitable Product Line Original Link: https://www.ethnews.com/blackrock-executive-says-bitcoin-etfs-are-now-the-firms-most-profitable-product-line/ BlackRock’s spot Bitcoin ETFs have overtaken every other ETF category at the firm, even its flagship S&P 500 products, according to comments from Cristiano Castro, Director of Business Development at BlackRock Brazil.

The shift marks a decisive moment for digital assets inside the world’s largest asset manager and highlights how dramatically institutional appetite has moved toward Bitcoin exposure.

Bitcoin ETFs Outperform All 1,400+ Funds at the Firm

Castro revealed that BlackRock’s Bitcoin ETF lineup has become the most profitable segment of its entire ETF business. At the center of this surge is the iShares Bitcoin Trust (IBIT), which has grown at a rate unmatched in ETF history. IBIT rapidly climbed to $70 billion in assets under management and is now nearing $100 billion when its international counterparts are included.

This acceleration has translated into extraordinary revenue. With an estimated $245 million in annual fees generated as of October 2025, IBIT has overtaken BlackRock’s massive iShares Core S&P 500 ETF (IVV), despite IVV being far larger in size. The reason comes down to fee structure: IBIT carries a 0.25% expense ratio, while IVV’s is only 0.03%, making Bitcoin ETFs a significantly higher-earning line of business.

A New Heavyweight in BlackRock’s ETF Revenue Rankings

IBIT is now BlackRock’s third-largest revenue generator across more than 1,400 ETFs and is only a few billion dollars in AUM away from potentially becoming number one. This level of performance is unprecedented for a crypto-focused product that, only a few years ago, was still considered speculative and niche.

BlackRock itself is reinforcing this shift internally. The firm’s Strategic Income Opportunities Portfolio recently boosted its IBIT allocation by 14%, signaling strong institutional confidence in Bitcoin as part of long-term portfolio positioning.

The Broader Shift Toward Digital Asset Demand

The rapid rise of IBIT reflects two powerful market dynamics reshaping global finance: surging institutional demand for Bitcoin access, and the long-running fee compression in traditional equity ETFs that has forced asset managers to evolve. Bitcoin ETFs have effectively become BlackRock’s next major profit engine, driven by fast adoption, deep liquidity, and increasingly mainstream acceptance of digital assets.

BlackRock’s internal metrics now point to a structural transformation. Bitcoin ETFs are no longer an experiment. They have become a defining, high-margin pillar of the firm’s global ETF strategy, signaling that digital assets are firmly establishing themselves in the future of institutional finance.