BlackRock posts record AUM despite sharp decline in crypto business
Market losses of $45.8 billion swallowed a year's worth of investor enthusiasm as Bitcoin and Ether dragged BlackRock's digital asset portfolio down to $48.8 billion
BlackRock’s (BLK) digital asset business declined sharply over the past year despite steady investor demand for its crypto products, as falling crypto prices weighed on asset values, according to Wednesday’s earnings release.
The company reported $48.8 billion in digital asset products at the end of the second quarter, down from $79.6 billion a year earlier, representing a nearly 39% year-over-year decline.
Over the past 12 months, BlackRock recorded $15.1 billion in net inflows into its digital asset products, but those were more than offset by $45.8 billion in market depreciation, illustrating the impact of crypto price declines on its ETF business.
The trend continued in the second quarter, with digital asset products experiencing $3.1 billion in net outflows.
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The weaker performance came alongside a challenging quarter for cryptocurrencies, with bitcoin losing more than 14% and ether falling 25% during the period.
Meanwhile, BlackRock’s overall operations continued to grow, with assets under management reaching a record $15.3 trillion after $192 billion in quarterly net inflows. The firm also exceeded Wall Street expectations, reporting adjusted earnings per share of $13.91 on revenue of $7.08 billion.