CoinDesk
BlackRock's digital asset products fell to $48.8 billion at the end of the second quarter from $79.6 billion a year earlier, a 39% decline that masks an underlying story of persistent institutional demand. The firm pulled in $15.1 billion in net inflows over the trailing twelve months, but $45.8 billion in market depreciation across crypto holdings swamped every dollar of new money and more.
The weakness extended into Q2 itself, when BlackRock's digital asset products recorded $3.1 billion in net outflows. Bitcoin led the price action lower, and the firm's crypto ETF complex remains tightly bound to spot moves rather than operating as an independent growth engine.
Why it matters
The contrast inside BlackRock's own earnings report is the real signal. Firmwide AUM hit a record $15.3 trillion on $192 billion in quarterly net inflows, and adjusted EPS of $13.91 beat Wall Street estimates on $7.08 billion in revenue. Crypto is the one corner shrinking while the rest of the platform compounds. Management is still leaning in: BlackRock is targeting $500 million in annual crypto revenue by 2030, more than ten times the roughly $40 million it currently books in base fees and securities lending.
The strategy is broadening, not retreating. Beyond spot bitcoin (IBIT) and ether (ETHA) ETFs launched in 2024, the firm rolled out the iShares Bitcoin Income ETF (BITY), a covered-call income wrapper on bitcoin exposure. BlackRock also manages roughly $60 billion of Circle's reserves, about a quarter of the $300 billion stablecoin market, and CFO Martin Small framed 5 billion crypto wallets as a distribution channel for traditional model portfolios and tokenized products. "We want to build a digital wallet native asset manager," Small said on the call.
Market impact
The 39% AUM slide is a reminder that flow data and price data tell different stories about ETF health. Net inflows held positive for the year even as mark-to-market losses dominated the headline, and Q2's $3.1 billion outflow is the first sign of capitulation inside the complex.
Frequently asked questions
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How much did BlackRock's crypto AUM fall in the past year?
Digital asset products fell to $48.8 billion at the end of Q2 from $79.6 billion a year earlier, a decline of roughly 39%, per BlackRock's earnings release.
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Did BlackRock's crypto ETFs see inflows or outflows over the period?
The firm booked $15.1 billion in net inflows over the trailing twelve months, but Q2 alone recorded $3.1 billion in net outflows from digital asset products.
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Why did crypto AUM fall if inflows were positive?
$45.8 billion in market depreciation across crypto holdings outweighed the $15.1 billion in net inflows, driving the 39% AUM decline.
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What is BlackRock's revenue target for its crypto business?
BlackRock is targeting $500 million in annual crypto revenue by 2030, more than ten times the roughly $40 million it currently generates in base fees and securities lending.
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What new crypto products has BlackRock launched?
Beyond spot bitcoin ETF IBIT and spot ether ETF ETHA, the firm introduced the iShares Bitcoin Income ETF (BITY), a covered-call income wrapper on bitcoin exposure, and manages about $60 billion of Circle's stablecoin reserves.
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