David Edwards
BlackRock Inc. (NYSE: BLK), the world’s largest asset manager, reported $3 billion in digital asset inflows in the first quarter of 2025, underscoring persistent investor interest in cryptocurrency-linked investment products despite market volatility and broader Bitcoin ETF liquidations earlier this year.
The inflows form part of the firm’s $84 billion in total net new assets during the quarter, according to its Q1 earnings report released April 11. While net inflows were down sharply from $281 billion in Q4 2024—a nearly 70% decline—the firm still managed to deliver 3% annualized growth in assets under management (AUM), now totaling $11.6 trillion.
CEO Larry Fink attributed the resilience in performance to robust base fee growth, describing the period as “our best start to a year since 2021.” He emphasized BlackRock’s role in helping clients adjust to market and policy transitions, noting that the firm continues to focus on long-term structural opportunities across asset classes.
A standout contributor to Q1 growth was the iShares ETF franchise, which recorded $107 billion in net inflows. Of this, approximately $3 billion—or 2.8%—was allocated to digital asset ETFs, reflecting continued demand for crypto-exposed instruments even amid sector-wide caution.
While digital assets accounted for less than 1% of BlackRock’s long-term base fee revenue—generating $34 million as of March 31—the firm now manages $50.3 billion in digital asset AUM. That figure, representing 0.5% of total AUM, is still modest but signals a growing institutional footprint in the digital asset space.
Alternative investments also played a notable role this quarter, with $9.3 billion in private market inflows, further diversifying the firm’s sources of growth beyond traditional asset classes.
Despite the declining pace of overall inflows, the company’s continued traction in the digital asset sector stands out against the backdrop of significant outflows experienced by competing Bitcoin ETF issuers. BlackRock’s performance suggests that while crypto remains a niche component of its portfolio, investor appetite for blockchain-linked exposure remains intact.
Fink reiterated that BlackRock aims to support clients through evolving economic cycles.
“Our goal is to keep clients focused on the long-term, while helping them address short-term liquidity and allocation needs within the BlackRock platform,” he said.
