BlackRock’s Bitcoin ETF narrowly outperforms S&P 500 despite steep drawdown

Since its launch on Jan. 11 2024, BlackRock’s iShares Bitcoin Trust (IBIT) has delivered a total‑return of 67.74%, edging out Vanguard’s S&P 500 ETF (VOO) which returned 66.14% over the same period. The 1.60‑percentage‑point advantage, however, came with a far more volatile journey.

Performance gap hides volatility disparity

IBIT’s peak‑to‑trough decline reached 53.30% between Oct. 6 2025 and June 30 2026, while VOO’s maximum drawdown was 18.69% from Feb. 19 to Apr. 8 2025. Investors who entered both funds at launch therefore saw similar cumulative gains by Aug. 31 2026, but Bitcoin ETF holders endured a loss of more than half from the fund’s peak.

Bitcoin price swings drive ETF outcomes

Bitcoin traded near $47,000 at the start of 2024, surged to a record around $126,000 in 2025, then fell to roughly $58,000 before recovering to about $77,000 by the end of the period. These price swings erased much of IBIT’s early performance edge.

Scale and market context

IBIT has grown to manage roughly $60 billion in assets, attracting about $63 billion of inflows since launch, making it the largest spot Bitcoin ETF. In contrast, VOO crossed $1 trillion in net assets in June 2026, becoming the first ETF to reach that milestone.

Analyst perspective

Bloomberg senior ETF analyst Eric Balchunas noted the narrow lead as “hard to believe” and likened IBIT’s trajectory to a roller‑coaster ride, whereas VOO’s path resembled a “walk in the park.”