BlackRock Reports Strong Q1 2025 Performance with $3 Billion in Digital Asset Inflows

Key Takeaways

• BlackRock reported $84 billion in total net inflows in Q1 2025, achieving 3% annualized growth in assets under management
• Digital asset products attracted $3 billion in inflows, representing 2.8% of the firm's record $107 billion ETF inflows
• Despite growth, digital assets remain a modest segment, accounting for just $34 million in base fees (less than 1% of long-term revenue)
• Total digital assets under management reached $50.3 billion, approximately 0.5% of BlackRock's $11.6 trillion total AUM
• CEO Larry Fink highlighted 6% organic base fee growth, calling it the "best start to a year since 2021"

BlackRock's Overall Q1 2025 Financial Performance

• BlackRock managed $11.6 trillion in assets as of Q1 2025, maintaining its position as the world's largest asset manager
• The firm achieved $84 billion in total net inflows, representing a 3% annualized growth in assets under management
• Q1 2025 saw a 70% drop in net inflows compared to Q4 2024 ($84 billion vs. $281 billion)
• Despite lower inflows, BlackRock delivered 6% organic base fee growth
• Private markets showed continued strength with $9.3 billion in inflows
• CEO Larry Fink emphasized the company's focus on helping clients navigate market and policy changes while providing insights on "long-term structural growth opportunities"

Record-Breaking Performance in ETF Business

• iShares ETFs experienced a record first quarter with $107 billion in net inflows
• Digital asset products contributed $3 billion to these inflows, representing 2.8% of total ETF inflows
• The strong ETF performance occurred despite widespread liquidations in the Bitcoin ETF market earlier in the year
• BlackRock's continued inflows suggest steady investor interest in crypto-backed ETFs

Digital Asset Segment Analysis

• Digital assets under management reached $50.3 billion by the end of Q1 2025
• This figure represents approximately 0.5% of BlackRock's total $11.6 trillion in assets under management
• Digital assets generated $34 million in base fees during Q1
• Base fees from digital assets accounted for less than 1% of BlackRock's long-term revenue
• BlackRock's positive digital asset inflows stand in contrast to competitors like Grayscale, which saw approximately $1.4 billion in outflows from its crypto ETFs year-to-date as of April 4, 2025

Alternative Investment Performance

• Alternative investments were a significant contributor to BlackRock's Q1 results
• Private market inflows totaled $9.3 billion during the quarter
• These alternative investment flows complemented the strong performance in the ETF business

BlackRock's Strategic Focus

• CEO Larry Fink described the 6% organic base fee growth as the company's "best start to a year since 2021"
• The company maintained "secular strength against a complex market backdrop"
• BlackRock's stated goal is keeping clients focused on long-term opportunities while facilitating any near-term allocation or liquidity changes within the BlackRock platform
• The firm continues to position itself as a guide for clients navigating market uncertainties and structural growth opportunities