Despite $15 billion in net inflows over the past year, BlackRock's digital asset funds saw a significant decrease in value due to declining cryptocurrency prices.
By Helene Braun, Francisco Rodrigues|Edited by Jamie Crawley Jul 15, 2026, 12:12 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on SummaryShow- BlackRock's digital asset funds decreased from $79.6 billion to $48.8 billion over the past year, despite $15.1 billion in net inflows.
- The decline was largely attributed to $45.8 billion in market losses, overshadowing the new investments.
- During the second quarter, digital asset products experienced $3.1 billion in net outflows, even as BlackRock achieved record overall assets and surpassed Wall Street earnings projections.
BlackRock's (BLK) digital asset sector experienced a significant contraction over the past year, even as investors continued to invest in its crypto offerings, revealing the effects of decreasing cryptocurrency values on the leading asset management firm.
According to BlackRock’s latest earnings report released on Wednesday, the value of its digital asset products fell to $48.8 billion at the end of the second quarter, down from $79.6 billion a year earlier, marking a nearly 39% drop.
This decline occurred despite $15.1 billion in net inflows into the products over the last 12 months, which were more than countered by $45.8 billion in market depreciation, highlighting the strong correlation between the firm’s crypto ETF business and digital asset prices.
The downturn persisted into the second quarter, during which BlackRock's digital asset products saw $3.1 billion in net outflows.
BlackRock's digital asset fund decline coincided with a downturn in the crypto markets, where Bitcoin BTC$65,098.05 and ether (ETH) both faced challenges in recovering from prior losses. Bitcoin dropped over 14% during the quarter, while ether fell by 25% in the same timeframe.
In contrast to the struggles in its crypto segment, BlackRock's overall business achieved record assets under management (AUM) of $15.3 trillion, attracting $192 billion in net inflows in the quarter. The company also surpassed Wall Street forecasts with adjusted earnings per share of $13.91 on revenue of $7.08 billion.
In pre-market trading on Wednesday, BLK shares rose 4.15% to £1,068.
BlackRock’s Future Crypto Goals
During its earnings call, BlackRock outlined a target of generating $500 million in annual revenue from its digital asset business by 2030.
This goal represents an increase of more than tenfold from the current $40 million generated from base fees and securities lending, which accounts for less than 1% of the total fee revenue for the firm.
The firm has been expanding its crypto ETF offerings since launching its spot bitcoin ETF (IBIT) and spot ether ETF (ETHA) in 2024. Recently, it introduced the iShares Bitcoin Income ETF (BITY), which aims to generate income through covered call options on bitcoin, providing an alternative for investors beyond merely tracking the cryptocurrency's price.
Additionally, BlackRock manages $60 billion of Circle’s reserves, which constitutes about a quarter of the $300 billion stablecoin market, and aims to become the preferred reserve manager in this industry.
BlackRock also identified 5 billion crypto wallets as a potential new distribution channel for its traditional investment products during the earnings call.
“They represent potential new users for model portfolios, SMEs, and managed accounts in a tokenized format. Our goal is to create a digital wallet native asset manager,” stated Martin Small, the firm’s Chief Financial Officer.
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Why it matters:
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