BlackRock's iShares Bitcoin Trust (IBIT) has become the asset manager's most profitable exchange-traded fund based on annualized fee revenue, signaling strong institutional interest in cryptocurrency. This development coincides with S&P Global launching a new hybrid crypto-equity index and Coinbase expanding its staking services into New York.
These individual events highlight a broader trend of digital assets becoming more integrated into the mainstream financial system, with major firms creating new products and navigating complex regulatory environments to meet growing client demand.
Key Takeaways
- BlackRock's iShares Bitcoin Trust (IBIT) is now its top ETF by annualized fee revenue, with $97 billion in assets under management.
- S&P Global has launched the "Digital Markets 50," a new index combining 35 crypto-related stocks and 15 digital currencies.
- Coinbase has received approval to offer cryptocurrency staking services for Ethereum, Solana, and Cosmos to residents of New York.
- Morgan Stanley expanded crypto access on its E*Trade platform, and Bitcoin mining stocks saw a recent surge.
BlackRock Bitcoin Fund Sets New Revenue Record
The iShares Bitcoin Trust (IBIT) from BlackRock, a $12 trillion asset management firm, has achieved a significant milestone. The 21-month-old fund now generates more annualized fee revenue than any other ETF in the company's extensive lineup, including products that have been available for over two decades.
According to data from iShares, the fund held $97 billion in assets under management as of the close of trading on Thursday. This rapid accumulation of assets underscores the substantial institutional capital flowing into regulated Bitcoin investment vehicles.
The fund's growth has been consistent, with recent inflows showing strong momentum. Last week, IBIT attracted $2.5 billion in new capital, a notable increase from the $1.8 billion recorded in the prior week. This performance comes amid market volatility and discussions of new U.S. tariffs on Chinese goods.
IBIT Performance Snapshot
Despite its revenue success, IBIT's share price is not immune to broader market trends. On Friday, the ETF's shares were trading at $65.85 just before the closing bell, reflecting a 4% decline for the day in line with a wider market downturn.
Fink's Perspective on Bitcoin
The success of the Bitcoin ETF aligns with public statements made by BlackRock CEO Larry Fink. During an appearance in August, Fink explained the core appeal of Bitcoin as a hedge against currency devaluation, a role traditionally held by gold.
"You own Bitcoin because you’re frightened of the debasement of your currency," Fink stated, adding that he had "become a believer" in the digital asset's potential role in a diversified portfolio.
This viewpoint suggests that institutional investors are increasingly viewing Bitcoin not just as a speculative asset, but as a strategic tool for wealth preservation.
S&P Global Introduces Hybrid Crypto Index
In a move that further bridges traditional finance and digital assets, S&P Global has launched its first hybrid index. The new benchmark, named the "Digital Markets 50," combines publicly traded companies involved in the crypto industry with actual cryptocurrencies.
This innovative index provides a single, diversified tool for asset managers seeking broad exposure to the digital asset ecosystem without needing to select individual winners. It simplifies the investment process for those looking to capture the overall growth of the sector.
At its launch, the index will track a portfolio consisting of:
- 35 publicly traded companies with ties to blockchain technology.
- 15 major cryptocurrencies from the S&P Cryptocurrency Broad Digital Market Index.
Included Cryptocurrencies
The cryptocurrencies included in the index are sourced from S&P's Broad Digital Market Index, which features prominent assets such as Bitcoin (BTC), Ethereum (ETH), XRP, BNB, Solana (SOL), and Tron (TRX).
Cameron Drinkwater, Chief Product & Operations Officer at S&P Dow Jones Indices, commented on the index's purpose. He noted that the digital asset industry has moved from a niche market to a more established part of the global financial landscape.
Drinkwater said the new index suite "offers market participants consistent, rules-based tools to evaluate and gain exposure" to this evolving asset class.
Coinbase Secures New York Staking Market
Cryptocurrency exchange Coinbase has achieved a significant regulatory victory, ending a multi-year effort to offer its staking services in New York. The company announced this week that it can now provide these services to New York residents, a key market in the United States.
The approval from the New York Department of Financial Services (NYDFS), which oversees the state's crypto industry, marks a turning point for Coinbase in the region. The specifics of the agreement between Coinbase and the regulator have not been publicly detailed.
Initially, Coinbase will offer staking for three major cryptocurrencies:
- Ethereum (ETH)
- Solana (SOL)
- Cosmos (ATOM)
A Competitive Advantage
For the time being, Coinbase appears to have an exclusive hold on the New York staking market. Competing platforms have not yet announced similar offerings. According to their customer agreements, Gemini and Kraken still explicitly exclude New York residents from their staking programs.
Other firms, like Bitstamp, limit their staking services to European customers. This regulatory clearance gives Coinbase a first-mover advantage in offering yield-generating products to one of the largest financial hubs in the world.
Broader Crypto Adoption Continues
Beyond these major developments, other financial firms are also expanding their digital asset services. Morgan Stanley has now enabled all of its wealth management clients on the E*Trade platform to access Bitcoin, Ethereum, and Solana.
This move makes crypto exposure more accessible to a wider base of retail investors through a traditional and trusted brokerage platform.
In other market news, publicly traded Bitcoin mining companies experienced a significant surge in their share prices earlier in the week. The rally followed Bitcoin setting a new all-time high price of over $125,000, which directly increases the profitability and revenue potential for mining operations.
