BlackRock's Q1 Crypto Inflows: $3B Surge
BlackRock reported $3 billion in net inflows into its digital asset products during the first quarter of 2025. This is part of a larger $84 billion in total net inflows for the quarter, as detailed in their April 11th earnings release.
Key Takeaways
- $3 billion in digital asset product inflows for BlackRock in Q1 2025.
- Digital assets currently represent a small, but growing, portion of BlackRock's overall assets under management (AUM).
BlackRock's iShares ETF platform performed exceptionally well, attracting $107 billion in net inflows. However, this was offset by outflows in other areas, most notably a $45.5 billion withdrawal from institutional index funds, resulting in the lower overall net inflow figure.
BlackRock's digital assets under management (AUM) reached over $50 billion by the end of Q1 2025, a 187% year-over-year increase. This growth significantly outpaced other asset classes, such as equities which saw an 8% year-over-year increase to $5.7 trillion.
Despite the positive inflow, Q1 2025 saw considerable market volatility. While digital assets received over $3 billion in net inflows, market depreciation decreased their value by over $8 billion.
As of March 31, 2025, BlackRock managed approximately $11.6 trillion in client assets. Digital assets currently constitute about 1% of BlackRock's total AUM, with the $3 billion in net inflows representing about 2.8% of total Q1 ETF inflows. This is in comparison to $9.3 billion in inflows from private market investments during the same period.
BlackRock generated $34 million in digital asset-related investment advisory and administration fees in Q1 2025, representing less than 1% of their total $4.1 billion in long-term revenue. This low-fee structure is typical for digital offerings, exemplified by their iShares Bitcoin Trust (IBIT) with a competitive 0.25% fee (post-waiver).
Interestingly, this BlackRock report comes as US-listed spot Bitcoin ETFs experienced their sixth consecutive day of net outflows, with $149 million in redemptions. This outflow was primarily driven by Fidelity's FBTC and Grayscale's GBTC, amidst investors seeking safer assets due to escalating US-China tariff disputes and market uncertainty surrounding US policy changes.
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