BlackRock’s spot digital asset-focused funds have seen net inflows for the fifth consecutive quarter, though the value of these assets fell by 9% as Bitcoin and Ethereum prices declined, according to the company’s latest earnings report.
As of March 31, BlackRock, the largest asset manager globally, reported $50.3 billion in ETF digital assets, which is approximately $5 billion less than the preceding quarter, as per the report.
Despite this, BlackRock maintained its leading position in inflows among asset managers, with the iShares Bitcoin Trust ETF (IBIT) and the iShares Ethereum Trust ETF (ETHA) bringing in $2.7 billion and $548 million in inflows, respectively, during the quarter. The total of $3.1 billion accounts for about 3% of net flows into BlackRock’s products for Q1. Presently, BlackRock has 463 products listed on the U.S. stock exchange, as reported by Stock Analysis.
As of Friday, the AUM (Assets Under Management) of BlackRock’s spot Bitcoin ETF stood nearly three times that of the Grayscale Bitcoin Trust ETF, totaling $45 billion versus $15.2 billion, according to data provider CoinGlass. Meanwhile, BlackRock’s spot Ethereum ETF had an AUM of $1.8 billion, lagging behind the Grayscale Ethereum Trust ETF’s $3.46 billion, though the latter has seen a decline of $4.1 billion since converting from an existing fund.
Investor interest in BlackRock’s crypto products was subdued in the first quarter amidst a largely risk-averse market. In the past year, BlackRock’s crypto ETFs amassed $30 billion in net inflows, averaging roughly $7.5 billion per quarter. Since its launch in January 2024, IBIT has contributed approximately $39 billion in net inflows.
Bitcoin dropped by 12% in the first quarter, marking its worst performance since last year’s second quarter, while Ethereum’s price plummeted by 45%, the steepest decline since Q2 2022. Despite this, BlackRock’s crypto ETFs continued to attract inflows.
Initially partnering with Coinbase for the custody of its crypto ETFs, BlackRock has recently engaged Anchorage Digital. In filings released earlier this week, BlackRock indicated it will now rely on the digital asset trust bank as an additional measure for securing digital assets.
Edited by James Rubin
Daily Debrief Newsletter
Start each day with the most important news stories, along with original features, a podcast, videos, and more.
