Investor Demand for BlackRock’s Crypto ETFs Cools in Q1 as Market Momentum Fades
BlackRock’s digital asset platform crossed the $50 billion threshold in assets under management in Q1 2025. However, momentum behind its spot bitcoin (BTC) and ether (ETH) ETFs slowed dramatically as crypto markets lost steam.
The asset manager reported $3 billion in net inflows into its crypto ETFs during the quarter, down a staggering 83% from the previous quarter’s $17.6 billion. The decline follows a euphoric Q4 2024, when optimism surged after Donald Trump’s election win, pushing crypto prices and ETF flows sharply higher.
Despite the pullback, the Q1 inflow figure signals that investor interest in crypto exposure through traditional vehicles remains intact, even in a cooling market environment.
The $3 billion represented 2.8% of all inflows into BlackRock’s iShares ETFs during the quarter, which collectively brought in $84 billion. That broader total marked a 70% quarter-over-quarter decline from $281 billion, as investors responded to macroeconomic uncertainty and shifting fiscal policy under the new administration.
BlackRock’s digital asset AUM now makes up just 0.5% of its $10 trillion global portfolio, underscoring how early-stage crypto adoption remains within the traditional financial ecosystem.
Base fees from crypto ETFs totaled $34 million in Q1, contributing less than 1% to the firm’s long-term revenue—a reminder that while digital assets are growing, they still represent a small slice of the overall business.
