BlackRock’s digital asset business saw a big drop in assets over the past year, even though it brought in billions of dollars in new investments. The company’s latest quarterly report shows that the value of its digital asset products fell to $48.8 billion at the end of the second quarter, down from $79.6 billion a year ago. This happened even as investors added $15.1 billion to BlackRock’s crypto products, but falling crypto prices erased much of those gains.
These numbers show how unstable cryptocurrency markets affect asset managers, especially those with spot Bitcoin and Ether ETFs. BlackRock said that falling crypto prices wiped out about $45.8 billion in value over the past year. In the second quarter alone, its digital asset products had net outflows of $3.1 billion.
Source: Binance.com
The weaker results were due to overall market trends. Both Bitcoin and Ether dropped during the quarter, with Bitcoin down more than 14% and Ether down about 25%. These price drops greatly reduced the value of BlackRock’s crypto investment products.
Even with the drop in digital assets, BlackRock had another strong quarter overall. The company, which is the world’s largest asset manager, reached a record $15.3 trillion in assets under management after bringing in $192 billion in net inflows and posting better-than-expected results.
BlackRock says it is still focused on growing its crypto business for the long term. In its earnings call, executives said the company wants to make $500 million a year from digital assets by 2030, up from about $40 million now. BlackRock has added more products since launching spot Bitcoin and Ether ETFs in 2024 and recently started the iShares Bitcoin Income ETF, which uses covered-call strategies to generate returns.
Executives also mentioned that digital wallets are growing quickly and could become a key way to distribute traditional investment products. BlackRock now manages about $60 billion in reserves for Circle’s stablecoin and wants to be the top reserve manager for the expanding stablecoin industry, showing its long-term commitment to digital finance.
BlackRock reports second quarter earnings results. https://t.co/9XH1s7SMkK pic.twitter.com/4AsnvqjVFK
— BlackRock (@BlackRock) July 15, 2026
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