BlackRock (BLK) Posts Sizeable Slump in Net Inflows into Its BTC and ETH ETFs

Despite the lame crypto price action in the first quarter of 2025, BlackRock (BLK) posted a sizable slump in net inflows into its spot bitcoin (BTC) and ether (ETH) ETFs.

The first quarter saw a substantial decrease in net inflows to BlackRock's (BLK) flagship spot bitcoin (BTC) and ether (ETH) ETFs, as anticipated given the sluggish performance of crypto prices.

According to the company's first-quarter earnings report, investors deposited a total of $3 billion into BlackRock's digital asset-focused ETFs. This marks an 83% decline from the massive inflow observed in the fourth quarter as prices and sentiment soared following the Trump election victory.

Considering the decrease in crypto prices throughout the first quarter, the $3 billion inflow into digital asset ETFs is still a significant indicator of strong demand for crypto-linked funds.

The $3 billion contributed 2.8% to the overall inflows into BlackRock's iShares ETFs in the first quarter. These iShares include active, core equity, and strategic funds, among smaller categories. By the end of the quarter, BlackRock managed approximately $50.3 billion in digital assets, which constitutes about 0.5% of its total assets of over $10 trillion.

Digital asset ETFs generated $34 million in base fees, which comprises less than 1% of the company's long-term revenue.

Last quarter, iShares' overall inflows fell by 70% to $84 billion, compared to $281 billion, as global markets coped with the shifting macroeconomic landscape under President Trump.

This resulted in a 15% year-over-year decrease in net income, reaching $3.24 billion, slightly above the average estimate of $3.18 billion. However, earnings per share for the period remained at $7.66, meeting the expectations of analysts.

In the first quarter, iShares generated $1.9 billion in revenue, and the company's wealth management fee revenue also declined by 25%.