BlackRock's digital assets under management fell sharply in the second quarter of 2026, despite strong investor demand.
The firm's crypto AUM dropped 39% to $48.8 billion, down from $79.6 billion a year earlier. This occurred even as investors poured $15.1 billion in net inflows into BlackRock's crypto products over the same period.
The decline was driven by a $45.8 billion market loss. The prices of Bitcoin and Ether fell significantly during the quarter-Bitcoin by more than 14% and Ether by 25%. This volatility directly impacted BlackRock's flagship spot ETFs, the iShares Bitcoin Trust (IBIT) and iShares Ethereum Trust (ETHA).
The quarter also saw $3.1 billion in net outflows from digital asset products, signaling a potential shift in investor sentiment.
However, BlackRock's total assets under management reached a record $15.3 trillion. Crypto remains a small fraction, representing about 0.3% of the firm's overall portfolio.
BlackRock is not retreating. The company has set an ambitious goal to generate $500 million in annual crypto-related revenue by 2030. This is a major increase from the approximately $40 million it currently earns. The firm has also expanded its product offerings to include the iShares Bitcoin Income ETF (BITY) and manages reserves for the USDC stablecoin issuer, Circle.