BlackRock’s cryptocurrency-focused iShares exchange-traded funds (ETFs) saw a dramatic 366% quarter-on-quarter increase in capital inflows during the second quarter, rising from $3 billion to $14 billion. This growth defied broader market headwinds as crypto ETFs accounted for 16.5% of BlackRock’s total ETF inflows of $85 billion – a substantial increase from Q1’s 2.8% share.
Base fees generated from digital assets rose by 18% to reach $40 million during the period, though they represent only about 1% of BlackRock’s total base fee revenue. CEO Larry Fink emphasized these results align with the firm’s strategic commitment to expanding its digital asset offerings.
The substantial capital influx signals robust institutional appetite for cryptocurrency investment vehicles despite ongoing market volatility, underscoring deepening mainstream adoption of digital assets through regulated financial products.