BlackRock's Bitcoin ETF Outpaces Vanguard's S&P 500 Fund

BlackRock's entry into the bitcoin ETF market marked a turning point for crypto-linked products. After a decade of rejected applications, the SEC approved 11 spot bitcoin ETFs in 2024, paving the way for institutional-grade investment inflows through traditional brokerage accounts.

The iShares Bitcoin Trust (IBIT), launched by BlackRock in January 2024, has returned 71% since its debut, outperforming Vanguard's S&P 500 ETF over the same period. With $61.4 billion in assets under management, IBIT dwarfs every other bitcoin ETF on the market.

The fund's success can be attributed to its ability to provide regulated access to a volatile digital asset. Despite price swings, investors have continued to pour money into bitcoin funds, with over $2.8 billion flowing in between August 17 and 27, 2026. The recent rally has seen bitcoin climb nearly 30% over the past month, drawing fresh capital towards ETFs like IBIT.