BlackRock has entered the cryptocurrency realm discreetly, generating over $260 million annually from digital asset products in less than two years.

This substantial profit largely stems from the rapid success of the spot Bitcoin and Ethereum exchange-traded funds (ETFs), which have become among the firm's most lucrative offerings.

According to Dragonfly partner Omar Kanji, BlackRock's iShares Bitcoin Trust (IBIT) produced approximately $218 million in fees with a 0.25% commission in its first year, while the Ethereum fund ETHA added another $42 million.

Kanji emphasized the funds' success as a reflection of investors paying considerably more for access to crypto products compared to traditional ETFs.

IBIT and ETHA charge an annual fee of 0.25%, while BlackRock's established ETFs charge between 0.03% and 0.1%, indicating the premium institutional demand for Bitcoin and Ethereum positions.

This momentum aligns with broader investor interest in the asset class.

Since launching in January 2024, IBIT became the largest global crypto ETF and now ranks as the 22nd largest ETF overall in asset size, according to VettaFi.

IBIT has attracted net inflows of $60.6 billion, representing nearly three-quarters of all US Bitcoin ETF flows, managing over $88 billion and solidifying its flagship status.

Meanwhile, BlackRock's Ethereum product, ETHA, has become a strong player, drawing $13.4 billion in net inflows since its introduction in July 2024 and holding 72.5% of all US ETH ETF flows.