BlackRock's Crypto ETFs Drive Strong Earnings Amid Institutional Demand

According to Cointelegraph, BlackRock's iShares exchange-traded funds (ETFs) have significantly contributed to the asset manager's robust quarterly earnings and revenue, highlighting the growing momentum behind its crypto-related products as institutional interest continues to rise. The iShares platform, encompassing over 1,400 ETFs globally, achieved a record $205 billion in total net inflows during the third quarter, as detailed in the company's quarterly financial statement. These inflows resulted in a 10% increase in organic base fee growth for the quarter and an 8% growth over the past year, as stated by Chairman and CEO Larry Fink. BlackRock's digital asset ETFs recorded $17 billion in net inflows during the quarter, bringing the year-to-date total to $34 billion. As of September, total crypto assets under management (AUM) reached nearly $104 billion, accounting for approximately 1% of BlackRock's overall assets. Since the beginning of the year, the firm's digital asset ETF AUM has experienced substantial growth due to strong net inflows. The success of the iShares Bitcoin Trust (IBIT) has been particularly noteworthy, generating $25 million more in fees than BlackRock's second-most profitable ETF and nearing $100 billion in net assets by early October. IBIT was among the initial wave of spot Bitcoin (BTC) ETFs approved by the US Securities and Exchange Commission in early 2024. Later that year, BlackRock introduced the iShares Ethereum Trust (ETHA), a spot Ethereum ETF that, after a slow start, gained momentum in 2025 to become the third-fastest fund to reach $10 billion in assets. Overall, robust inflows contributed to a strong quarter for BlackRock, which reported total AUM of $13.46 trillion, marking a 17% increase from the previous year. Both earnings and revenue surpassed analysts' expectations for the period. The surge in crypto ETF inflows not only underscores BlackRock's market leadership but also reflects the growing institutional appetite for digital assets. On the Bitcoin front, BlackRock's IBIT remains the largest Bitcoin ETF, holding over 800,000 BTC, according to industry data. Institutions increasingly favor ETFs for their regulatory clarity, custodial safeguards, and simplified accounting, allowing direct exposure to digital assets without the operational complexities of self-custody. These ETFs have been a significant driver behind Bitcoin's sustained rally since early 2024, culminating in a new all-time high above $126,000 earlier this month. Part of this momentum may also be attributed to the "debasement trade," as investors seek refuge from the US dollar's steepest decline in five decades amid widening fiscal deficits, trade uncertainty, and persistent inflation. As Cointelegraph recently reported, Bitcoin's correlation with gold has strengthened, suggesting that an increasing number of investors view BTC as a store of value and inflation hedge alongside traditional safe-haven assets.