I wonder if they disclose how much money they make from offering IBIT.
Overall, I now understand how Bitcoin ETFs work. However, it appears to me that Bitcoin is becoming a conventional financial instrument, subject to all the regulations and rules that govern market players. I’m not sure whether this is a positive or negative development.
Here's the data you need.
https://www.blackrock.com/us/individual/products/333011/ishares-bitcoin-trustBlackRock will waive a portion of the Sponsor’s Fee for the first 12 months commencing on January 11, 2024, so that the fee will be 0.12% of the net asset value of the Trust for the first $5.0 billion of the Trust’s assets. If the fund exceeds $5.0 billion of the Trust’s assets prior to the end of the 12-month period, the Sponsor’s Fee charged on assets over $5.0 billion will be 0.25%. All investors will incur the same Sponsor’s Fee which is the weighted average of those fee rates. After the 12-month waiver period is over, the Sponsor’s Fee will be 0.25%.
We will start with the formula on how they'll make money. So assuming the Blackrock will earn 0.12% for the first $5 billion and 0.25% sponsor fee on the excess, here's the computation.
First $5 billion at 0.12%: $5,000,000,000 × 0.0012 = $6,000,000
Remaining $39.76 billion at 0.25%: $36,760,000,000 × 0.0025 = $99,400,000
Total estimated annual revenue: $6,000,000 + $99,400,000 = $105,400,000
https://ycharts.com/companies/IBIT/total_assets_under_managementIBIT Total Assets Under Management:
44.76B for Nov. 20, 2024