BlackRock experienced a significant decline in net inflows to its spot bitcoin (BTC) and ether (ETH) exchange-traded funds (ETFs) in the first quarter of 2025. The company reported $3 billion in inflows during Q1, representing an 83% drop from the previous quarter. This downturn reflects a broader cooling in the cryptocurrency market and a general slowdown in investor sentiment caused by changing macroeconomic conditions.
Despite the sharp decline, the $3 billion in inflows still indicates continued institutional interest in crypto-based financial instruments. These inflows made up 2.8% of the total net inflows into BlackRock’s iShares ETF platform during Q1.
Broader ETF Performance
In total, BlackRock’s iShares platform attracted $84 billion in new assets in the first quarter of 2025. This figure is a stark decrease from the $281 billion raised in the previous quarter, highlighting a broader trend of declining investment activity.
Crypto Holdings and Revenue
- As of March 31, BlackRock’s digital asset holdings stood at $50.3 billion.
- This amount constitutes about 0.5% of the firm’s total assets under management, which exceed $10 trillion.
- Base fees from digital asset ETFs generated $34 million in revenue, less than 1% of BlackRock’s total long-term earnings.
Market Context
The sharp downturn in inflows followed a highly optimistic Q4 2024. At that time, rising cryptocurrency prices and strong market sentiment fueled record high investment in crypto ETFs. In contrast, Q1 2025 was marked by relatively flat price activity and more cautious investor behavior.
For more detailed information, you can view the original article from CoinDesk here.
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