BlackRock Crypto ETFs See 366% Inflow Surge Driving Record AUM

BlackRock, the world's largest asset management firm, has reported a significant increase in capital directed towards its cryptocurrency exchange-traded funds (ETFs) in the second quarter of 2025. This surge in interest from investors in digital assets has contributed to the firm's record assets under management (AUM) of $12.5 trillion.

The second quarter saw a remarkable 366% increase in inflows to BlackRock’s crypto ETFs, totaling $14 billion. This is a substantial rise from the $3 billion recorded in the previous quarter. Crypto-focused iShares ETFs from BlackRock accounted for 16.5% of the total ETF inflows during this period, up from less than 3% in the first quarter. This shift indicates a growing trend among investors to allocate funds into cryptocurrency through institutional products.

Revenue from digital assets also saw an improvement, with BlackRock generating $40 million in base fees tied to crypto investments. This represents an 18% increase from the $34 million earned in the first quarter. Although digital assets still constitute a small portion of the company’s overall income, they are steadily contributing to long-term revenue growth.

Chairman and CEO Laurence Fink highlighted the strong performance of iShares ETFs in the first half of the year, noting increased demand across private markets and digital assets. The firm's data-driven strategies and recent developments, such as the joint venture Jio BlackRock in India, have helped attract new global investors. The collaboration has launched several investment offerings aimed at tapping into the Indian market, further bolstering BlackRock's global presence.

Despite the gains in digital asset products, BlackRock's total inflows for the quarter decreased by 19%, from $84 billion in the first quarter to $68 billion. This decline was primarily due to a single institutional investor's partial withdrawal of $52 billion from a low-cost index strategy. However, the company's broader momentum remained robust, with total assets under management reaching $12.5 trillion by the end of June. Net inflows for the first six months of the year amounted to $152 billion, driven by strong ETF performance and contributions from private and cash strategies.

Other notable financial metrics for BlackRock include a 13% year-over-year increase in revenue, fueled by market strength and increased fee-based earnings. GAAP operating income declined by 4% due to noncash acquisition-related accounting expenses, while adjusted operating income rose by 12%, reflecting strong performance when excluding one-time costs. Earnings per share (EPS) increased by 2%, and adjusted EPS jumped by 16% despite tax and share pressures.

The momentum in crypto ETFs is not limited to BlackRock. Industry-wide, total net investments into U.S. spot crypto ETFs have already surpassed last year’s figures at this point in the year. In 2024, the figure stood at roughly $14.8278 billion by midyear. In 2025, it has slightly edged past that, reaching approximately $14.8381 billion. Based on current trends, this momentum could further accelerate inflows, benefiting leading asset managers as digital assets continue to attract institutional interest.