BlackRock Sees $3 Billion in Digital Asset Inflows in Q1 2025
New York, US – Finance Today – Global asset management giant BlackRock has had a strong start to 2025, reporting $3 billion in net inflows into digital assets in the first quarter, according to an earnings report released on April 11. The investment accounted for about 2.8% of the $107 billion in inflows into iShares ETFs during the same period, indicating growing interest from institutional investors in the digital asset space.
Solid Asset Growth Amid Market Volatility
Overall, BlackRock recorded $84 billion in net inflows in Q1, contributing to a 3% year-over-year increase in assets under management (AUM), bringing the firm’s total AUM to $11.6 trillion – continuing to maintain its position as the world’s largest asset manager.
In addition, investments in private markets and alternative assets also contributed significantly, with $9.3 billion in inflows, affirming the trend of diversifying institutional clients’ portfolios.
Digital assets: A small but growing segment
Although digital assets only account for about 0.5% of BlackRock’s total assets under management ($50.3 billion), the $3 billion inflow in Q1 is remarkable in a volatile market. Notably, this follows a period of large-scale liquidations in Bitcoin ETFs earlier this year, demonstrating the stability and growing confidence in professionally structured crypto products.
Digital asset revenues remain modest – $34 million in basic fees, or less than 1% of BlackRock’s long-term revenue. However, the firm’s steady inflows into the space suggest it is betting on the long-term growth of the crypto market.
Larry Fink: “We had our strongest start to a year in 2021”
“We achieved 6% organic basic fee growth in Q1, marking our best opening quarter in 2021, despite the challenging market environment,” said CEO Larry Fink. He emphasized the importance of helping clients navigate shifting economic policies, flexible asset allocations, and a long-term focus.
UK Digital Asset License
Another important development is BlackRock’s recent receipt of a cryptoasset license from the UK’s Financial Conduct Authority (FCA). This license allows the company to launch spot Bitcoin ETPs in Europe, and to conduct digital asset trading in the UK – albeit limited to professional and institutional investors.