BlackRock's Bitcoin ETF Is Beating Vanguard's S&P 500 Fund Since Launch

BlackRock's spot Bitcoin ETF has out-returned Vanguard's flagship S&P 500 fund since both existed on the same timeline, according to Bloomberg senior ETF analyst Eric Balchunas. The comparison covers the roughly two and a half years since IBIT launched in January 2024.

THE NUMBERS

Balchunas posted Bloomberg data on September 1 showing IBIT's cumulative total return at 71 percent since its debut, against 66 percent for Vanguard's VOO over the same stretch. He called the result hard to believe but true, and said it holds even though the two funds took very different paths to get there.

IBIT's ride, Balchunas said, looked like a roller coaster, while VOO's climb was comparatively steady. He added that the result is still somewhat surprising given the mood around Bitcoin from October 2025 through July 2026, a stretch that included a sharp drawdown in MSTR and broader crypto markets.

WHY IT MATTERS

VOO is one of the largest and most widely held index funds in the world, a default choice for retirement accounts and passive investors tracking the S&P 500. IBIT is younger by decades and carries far more volatility tied directly to Bitcoin's price swings. That a fund this new, built around an asset regularly dismissed as too risky for mainstream portfolios, is outrunning the benchmark most investors treat as the safe default says something about how far Bitcoin's price has actually traveled since the ETF's approval.

BlackRock's fund has grown into the largest Bitcoin ETF by assets since the SEC approved eleven spot Bitcoin ETFs in January 2024, well ahead of rivals from Fidelity, Grayscale and other issuers that launched the same week.

This story comes from the Simply Bitcoin Live show. Watch the full episode.