Crypto ETFs from BlackRock outpace competitors despite market headwinds
Crypto ETFs from BlackRock outpace competitors
BlackRock, the world’s largest asset manager, led the digital assets investment sector in the first quarter of 2025, pulling in $3.35 billion into its crypto exchange-traded funds (ETFs), according to its latest earnings release.
Despite an 83% decline from the record-setting fourth quarter of 2024, BlackRock’s crypto ETFs outperformed all competitors, securing positive inflows while many rivals experienced net outflows, according to the Cryptopolitan.
The figure represents roughly 2.8% of the firm’s total $84 billion inflows during the quarter, a remarkable showing given that crypto still accounts for less than 0.5% of BlackRock’s $11.6 trillion in assets under management.
Strong performance in a shaky quarter
The Q1 inflow comes amid a challenging macroeconomic environment marked by growing uncertainty over Trump administration tariffs and recessionary fears. While digital asset markets saw cooling enthusiasm compared to late 2024—when optimism followed Donald Trump’s election victory—investor interest in BlackRock’s offerings remained resilient.
According to data from CoinShares, BlackRock was one of only three firms to record positive flows in crypto investment products, alongside ProShares ($398 million) and Ark 21Shares ($148 million). In stark contrast, Grayscale saw $1.39 billion in outflows, with other firms like Fidelity and Bitwise also in the red.
Though digital assets still represent a small slice of BlackRock’s business—with $50.3 billion in AUM and $34 million in Q1 fees—their contribution to sector-wide growth was significant. The firm’s crypto inflows were largely responsible for the industry's $960 million net positive flow.
CEO Larry Fink acknowledged client anxiety about market direction but said BlackRock’s diversified approach and long-term strategy position it well to navigate the turbulence. “We’ve seen moments like this before,” he said, citing past structural shifts in global finance.
BlackRock, the world’s largest asset manager with $11.5 trillion under management, has recommended allocating 1% to 2% of portfolios to Bitcoin (BTC) for some investors. The suggestion, part of a new report on multi-asset portfolios, marks a major endorsement from the financial giant.
