BlackRock Sees Strong Q1 Performance with $3 Billion in Crypto Inflows
BlackRock, the world's largest asset manager with $11.6 trillion in assets under management, reported $3 billion in digital asset inflows during the first quarter of 2025. This amount represents 2.8% of the company's total $107 billion in net inflows to iShares exchange-traded funds (ETFs) during the period.
The company announced $84 billion in total net inflows for Q1 2025, resulting in a 3% annualized growth in assets under management. BlackRock's Q1 earnings, released on April 11, showed strong performance led by a record first quarter for iShares ETFs and continued strength in private markets.
Private market investments also showed significant activity during the quarter. Alternative investments generated $9.3 billion in inflows, further contributing to BlackRock's overall growth during the period.
Digital assets remain a small segment of BlackRock's business. By March 31, digital assets accounted for $34 million in base fees, less than 1% of BlackRock's long-term revenue. The total digital assets under management reached $50.3 billion, about 0.5% of the firm's total assets under management.
The $3 billion in digital asset inflows is notable given the market conditions. These figures suggest steady investor interest in crypto-backed ETFs despite widespread liquidations in the Bitcoin ETF market earlier this year.
BlackRock CEO Larry Fink highlighted the company's fee growth as a key success metric. "We delivered 6% organic base fee growth in the first quarter, representing our best start to a year since 2021," Fink stated in the report, noting this performance occurred against a "complex market backdrop."
The firm experienced a 70% drop in net inflows compared to the previous quarter, falling from $281 billion in Q4 2024 to $84 billion in Q1 2025. Fink mentioned that BlackRock focuses on:
- Helping clients navigate market and policy changes
- Providing insights on long-term growth opportunities
- Keeping clients focused on long-term goals
- Assisting with near-term allocation or liquidity changes
BlackRock recently received approval from the UK's Financial Conduct Authority to operate as a crypto asset firm in the country. The approval enables BlackRock to arrange transactions for exchange-traded products backed by crypto assets and roll out its European spot Bitcoin ETP in the UK, though only for institutional and professional investors.
