BlackRock's Bitcoin, Ether ETFs See 83% Drop in Q1 2025 Inflows

BlackRock, a prominent asset management firm, reported a significant decline in net inflows into its spot bitcoin (BTC) and ether (ETH) ETFs during the first quarter of 2025. Investors contributed $3 billion to BlackRock’s digital asset-focused ETFs, marking an 83% decrease from the substantial inflows recorded in the previous quarter. This drop coincided with a period of stagnant crypto prices and shifting market sentiment, particularly following the Trump election victory, which had initially boosted prices and investor confidence.

Despite the decline, the $3 billion inflow into BlackRock’s digital asset ETFs still indicates robust demand for crypto-linked funds. This amount represents 2.8% of the total inflows into BlackRock’s extensive iShares ETFs, which encompass a variety of categories including active, core equity, and strategic funds. As of the end of the first quarter, blackrock managed approximately $50.3 billion in digital assets, constituting about 0.5% of its total assets exceeding $10 trillion.

The digital asset ETFs generated $34 million in base fees, accounting for less than 1% of the company’s long-term revenue. This figure underscores the relatively modest contribution of digital asset ETFs to BlackRock’s overall earnings, despite their growing popularity among investors.

The decline in bitcoin and ether ETF inflows was accompanied by a broader trend of reduced inflows across BlackRock’s iShares ETFs. Overall inflows into iShares fell by 70% to $84 billion from $281 million, as global markets grappled with the evolving macroeconomic landscape under the new administration. This broader market context highlights the challenges faced by investors and asset managers alike in navigating the shifting economic environment.