BlackRock's crypto assets fall 39% despite $15 billion of net inflows
BlackRock reported a 39% decline in the value of its digital asset products to $48.8 billion, despite attracting $15.1 billion in net inflows over the past year. The drop is largely attributed to market depreciation in crypto assets like Bitcoin and Ether during a challenging quarter.
Why it matters
The data highlights the high volatility of crypto-linked financial products and their direct correlation to underlying asset prices, even for institutional giants like BlackRock.
The firm reported digital asset products falling to $48.8 billion at the end of the second quarter from $79.6 billion a year earlier, a decline of nearly 39%, in its latest earnings release on Wednesday.
The drop came despite $15.1 billion of net inflows into the products over the past 12 months. Those inflows were more than offset by $45.8 billion in market depreciation, according to BlackRock’s filing underscoring how closely the firm's crypto ETF business remains tied to digital asset prices.
The weakness continued in the second quarter, when BlackRock's digital asset products recorded $3.1 billion in net outflows.
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