BlackRock's crypto assets fall 39% despite $15 billion of net inflows

Created at 15 Jul · 12:21 PM1 source↑ Market-relevant

IN SHORT

BlackRock's digital asset funds decreased to $48.8 billion from $79.6 billion a year ago, despite $15.1 billion in net inflows over 12 months. Market depreciation of $45.8 billion offset new investor money, with a further $3.1 billion in net outflows recorded in the second quarter.

Key Numbers

$48.8 billionBlackRock's digital asset funds at end of Q2

$79.6 billionBlackRock's digital asset funds a year earlier

39%Decline in digital asset funds

$15.1 billionNet inflows into crypto products over 12 months

$45.8 billionMarket depreciation in digital asset funds

$3.1 billionNet outflows from digital asset products in Q2

14%Bitcoin price fall in Q2

25%Ether price fall in Q2

$15.3 trillionBlackRock's record firmwide assets under management

$192 billionNet inflows into firmwide assets in Q2

$13.91Adjusted earnings per share

$7.08 billionRevenue

$500 millionTarget annual revenue from crypto business by 2030

$40 millionCurrent base fees and securities lending revenue from crypto

Who's Involved

BlackRock

World's largest asset manager whose digital asset business shrank

Martin Small

Chief Financial Officer of BlackRock

BlackRock's crypto assets fall 39% despite $15 billion of net inflows

↳ Why This Matters

The substantial decline in BlackRock's digital asset holdings, despite significant inflows, highlights the volatility of the crypto market and its impact on even the largest asset managers. It also underscores the firm's ambitious revenue targets for its crypto division and its strategy to integrate digital assets into its broader investment offerings.

Key facts

BlackRock's digital asset funds decreased by 39% to $48.8 billion from $79.6 billion over the past year.
Despite $15.1 billion in net inflows over 12 months, market depreciation of $45.8 billion led to the decline.
The firm experienced $3.1 billion in net outflows from digital asset products in the second quarter.
Bitcoin and ether prices fell significantly during the second quarter.
BlackRock's overall assets under management hit a record $15.3 trillion.
The company targets $500 million in annual revenue from its crypto business by 2030.

BlackRock's digital asset business experienced a significant contraction over the past year, with its crypto products falling by nearly 39% to $48.8 billion from $79.6 billion, despite attracting $15.1 billion in net inflows. This decline was primarily driven by $45.8 billion in market depreciation, underscoring the strong correlation between the firm's crypto ETF performance and digital asset prices.

The trend continued into the second quarter, which saw $3.1 billion in net outflows from BlackRock's digital asset products. This period coincided with a weaker crypto market, as Bitcoin and Ether prices declined by over 14% and 25% respectively during the quarter.

In contrast, BlackRock's overall business reported record assets under management of $15.3 trillion, with $192 billion in net inflows. The company also surpassed Wall Street earnings expectations, posting adjusted earnings per share of $13.91 on $7.08 billion in revenue.

Looking ahead, BlackRock aims to generate $500 million in annual revenue from its crypto business by 2030, a tenfold increase from its current revenue of approximately $40 million from base fees and securities lending. The firm has been expanding its crypto ETF offerings, including the iShares Bitcoin Income ETF (BITY), and manages a portion of Circle's stablecoin reserves. BlackRock's CFO, Martin Small, expressed a desire to become the industry's reserve manager of choice and to utilize the 5 billion crypto wallets as a distribution channel for traditional investment products.

Frequently asked questions

BlackRock's digital asset funds were valued at $48.8 billion at the end of the second quarter.

BlackRock's digital asset holdings decreased by nearly 39%, falling from $79.6 billion to $48.8 billion over the past year.

The decline was caused by $45.8 billion in market depreciation, which outweighed the $15.1 billion in net inflows over the past 12 months.

BlackRock is targeting $500 million in annual revenue from its crypto business by 2030.

What Happens Next

01BlackRock aims to achieve $500 million in annual revenue from its crypto business by 2030.

Get the newsletter.

Pick the topics you actually care about. We'll email when there's news worth your time, on the cadence you choose. Cancel any time from your account.

Cadence

How It Developed

BlackRock's digital asset products fell to $48.8 billion from $79.6 billion a year prior.

Net inflows of $15.1 billion over 12 months were outpaced by $45.8 billion in market depreciation.

Digital asset products saw $3.1 billion in net outflows during the second quarter.

Bitcoin fell more than 14% and ether fell 25% in the second quarter.

BlackRock's firmwide assets reached a record $15.3 trillion with $192 billion in net inflows.

BlackRock reported adjusted earnings per share of $13.91 on $7.08 billion in revenue.

BlackRock aims for $500 million in annual revenue from its crypto business by 2030.

BlackRock expanded its crypto ETF lineup with iShares Bitcoin Income ETF (BITY).

Sources

BlackRock's crypto assets fall 39% despite $15 billion of net inflowsCoinDesk