BlackRock Sees $3 Billion Inflows Into Digital Assets Despite Market Volatility

BlackRock, the world's largest asset manager, reported significant inflows into its digital asset products during the first quarter of 2025. The firm recorded $3 billion in inflows, highlighting sustained investor interest in cryptocurrencies despite broader market volatility. This influx is part of a larger trend of $84 billion in total net inflows for BlackRock during the same period, driven by surging demand for its iShares products.

The $3 billion in digital asset inflows is notable, especially considering the broader market conditions. The crypto market has experienced fluctuations, but BlackRock's performance indicates that institutional investors remain bullish on digital assets. This trend suggests that despite the volatility, there is a growing acceptance and integration of cryptocurrencies into mainstream investment portfolios.

BlackRock’s strong crypto inflows during the first quarter were driven largely by the success of its iShares Bitcoin Trust (IBIT), which has emerged as one of the leading Bitcoin ETFs since its launch in the United States in January. IBIT attracted over $2.3 billion in investments during the quarter, far outpacing rival products and solidifying BlackRock’s leadership in institutional crypto investment.

According to the latest earning release, during the first quarter of 2025, BlackRock’s ETFs focused on digital assets saw $3 billion in inflows, down 83% from the rise in the last quarter after Donald Trump won the election. This figure represents 2.8% of the total inflows into BlackRock’s iShares ETFs, which are equity and strategic products. BlackRock managed $50.3 billion in digital assets as of the quarter’s end, representing 0.5% of its $10 trillion of total assets.

The fall in Bitcoin and Ether ETF inflows accounted for a 70% fall in total iShares inflows, which dropped from $281 billion to $84 billion as markets reacted to President Trump’s macroeconomic policies. BlackRock still reported $84 billion in net inflows for the quarter, marking a 3% annual increase in assets under management. Interestingly, digital asset products accounted for 3.8% of iShares’ total net inflows.

As a result of heightened regulatory scrutiny, geopolitical tensions, and investor profit-taking, the first quarter of 2025 was a tumultuous period for digital assets. During the three months, Ethereum fell by approximately 15%, and Bitcoin fell by more than 12%. In that regard, BlackRock’s performance was noteworthy. Despite a sharp decline in inflows from Q4, analysts pointed out that the asset management continued to hold the majority of newly invested funds in crypto ETFs, highlighting the growing institutional trust in regulated crypto products.

Although BlackRock’s net inflows dropped by 70% in the first quarter of 2025, from $281 billion in Q4 2024 to $84 billion, chairman and CEO of BlackRock Laurence Douglas Fink or Larry Fink, highlighted the company’s strong fee growth as a notable achievement. In the report he said: “BlackRock’s positioning and connectivity with clients are stronger than ever, and it’s clear in our results. We delivered 6% organic base fee growth in the first quarter, representing our best start to a year since 2021 and secular strength against a complex market backdrop. We are helping clients navigate market and policy changes, while also providing insights on long-term structural growth opportunities.”

Expectations for the second quarter of 2025 are cautiously positive, with market participants attentively monitoring significant events. The United States Securities and Exchange Commission’s position regarding Ethereum Exchange-Traded Funds, future Federal Reserve interest rate increases, and broader macroeconomic trends are all being considered. BlackRock said it will offer more cryptocurrencies, with recent disclosures suggesting possible exposure to Ethereum and other digital currencies beyond Bitcoin. The firm’s long-term vision remains one of safe and convenient entry pathways for institutional investors.