Bitcoin and Ethereum fund flows plummet by 83% in Q1 2025, as investors pour $3 billion into BlackRock’s crypto ETFs despite volatile cryptocurrency prices.
BlackRock Bitcoin and Ether ETF Inflows Decline Sharply in Q1 2025
BlackRock‘s crypto ETFs saw $3 billion in net inflows in the first quarter of 2025, a significant drop from the previous quarter. The decline is largely attributed to the volatile nature of cryptocurrency prices during this period.
What Drives Demand for Crypto-Linked Funds?
Despite the slump in bitcoin and ether prices, investors still poured $3 billion into BlackRock‘s digital asset-focused ETFs in the first quarter. This represents 2.8% of the total inflows into the company’s iShares ETFs, which also include active, core equity, and strategic funds.
A Look at the Digital Asset Landscape
BlackRock managed roughly $50.3 billion in digital assets by the end of the first quarter, accounting for about 0.5% of its total assets of over $10 trillion. This is a relatively small proportion compared to the company’s overall portfolio.
BlackRock is a multinational investment management corporation founded in 1988 by Larry Fink and Ralph Schlosstein.
Headquartered in New York City, the company has grown to become one of the largest asset managers globally, with over $9 trillion in assets under management (AUM).
BlackRock's success can be attributed to its innovative approach to index fund investing and its expansion into alternative investments such as real estate and private equity.
The firm's influence extends beyond financial markets, with some critics arguing that it wields too much power over the global economy.
The decline in bitcoin and ether ETF inflows was not an isolated incident. iShares‘ overall inflows fell by 70% to $84 billion from $281 million, as global markets navigated the changing macroeconomic environment under President Trump.
Fees and Revenues
Digital asset funds accounted for $34 million in base fees, which is less than 1% of BlackRock‘s long-term revenue. This suggests that while crypto-linked funds are gaining popularity, they still represent a relatively small portion of the company’s overall business.
In conclusion, while the decline in bitcoin and ether ETF inflows may seem concerning, it highlights the ongoing interest in digital assets despite market volatility. As the crypto landscape continues to evolve, investors will likely remain attracted to these funds, albeit with caution.
