BlackRock Reports Strong Q1 as Digital Assets Gain Ground Amid Broader ETF Growth

BlackRock kicked off 2025 with $84 billion in net inflows, fueled by record-breaking demand for its iShares ETFs and growing interest in private markets.

Despite a 70% drop in quarterly inflows from Q4 2024, the world’s largest asset manager still posted a 3% annualized growth in assets under management (AUM), which now total $11.6 trillion.

In a notable highlight, iShares ETFs drew $107 billion in Q1 inflows—an all-time high for a first quarter. Of that, $3 billion, or 2.8%, went into digital asset products, signaling continued institutional appetite for crypto-backed investments even as other issuers experienced significant outflows.

While digital assets remain a small fraction of BlackRock’s overall business—accounting for just 0.5% of total AUM and less than 1% of long-term revenue—the segment now stands at $50.3 billion in assets, with $34 million in base fees generated during the quarter. This comes as other major players in the crypto ETF space, including Grayscale, have seen investor pullback, with CoinShares reporting $1.4 billion in outflows from Grayscale’s crypto ETFs year-to-date through early April.

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Private market strategies also delivered strong performance, adding $9.3 billion in inflows for BlackRock during the quarter.

Despite the overall slowdown in quarterly flows, CEO Larry Fink framed the results as a solid start to the year, emphasizing the firm’s 6% organic base fee growth—its strongest Q1 growth since 2021. He highlighted the company’s focus on long-term structural opportunities and guiding clients through a complex market environment.

BlackRock’s Q1 performance points to the firm’s diversified strength across asset classes, while also hinting at growing traction for digital asset products within traditional investment frameworks.

Alexander Stefanov