BlackRock's crypto AUM fell to $48.8B as market losses outweighed $15.1B inflows. The firm targets $500M digital asset revenue by 2030.
BlackRock's digital asset business shrank sharply over the past year. Lower crypto prices more than offset strong investor inflows. The firm reported $48.8 billion in digital asset AUM at the end of Q2, down from $79.6 billion a year earlier, a decline of nearly 39%, according to its earnings release Wednesday.
The drop came despite $15.1 billion in net inflows over the past 12 months. Market depreciation of $45.8 billion erased those gains, BlackRock said. The second quarter alone saw $3.1 billion in net outflows from the digital asset products.
The weakness in BlackRock's crypto funds mirrored the broader market. Bitcoin (BTC) fell more than 14% in the second quarter, while ether dropped 25%, the company noted.
BlackRock's overall business fared better. Total AUM hit a record $15.3 trillion in the quarter, with $192 billion in net inflows. The company posted adjusted earnings per share of $13.91 on $7.08 billion in revenue, beating Wall Street estimates. BLK holds an Alpha Score of 61 out of 100 on AlphaScala, reflecting a moderate risk-reward profile in the financials sector.
The firm laid out its digital asset revenue target: $500 million annually by 2030, more than ten times the current $40 million in base fees and securities lending from the business. That $40 million represents less than 1% of BlackRock's total fee revenue.
BlackRock has expanded its crypto ETF lineup. Since listing the iShares Bitcoin Trust (IBIT) and iShares Ethereum Trust (ETHA) in 2024, the firm recently launched the iShares Bitcoin Income ETF (BITY), which uses covered call options to generate income from bitcoin exposure. BlackRock also manages $60 billion of Circle's reserve assets, roughly one-quarter of the $300 billion stablecoin market.
On the earnings call, CFO Martin Small said the firm wants to become a "digital wallet native asset manager," pointing to 5 billion crypto wallets as a potential distribution channel. "They're all potential new users of model portfolios. SMEs and managed accounts, and tokenized format," Small said.
In June, crypto exchange trading volumes rose for the first time in five months. Spot volumes on centralized exchanges climbed 15.3% to $1.11 trillion, while real-world asset perpetual volumes hit a record $311 billion, data show. BlackRock aims to generate $500 million in annual revenue from digital assets by 2030, up from $40 million currently.
Prepared with AlphaScala editorial tooling from the source reporting linked above. Indexable analysis may include a cited Alpha Score value. Publishing checks screen each story before release. Educational coverage, not personalized advice.