BlackRock's Crypto AUM Falls 39% Amid Market Declines

BlackRock's digital asset business saw a significant decline in assets under management (AUM) to $48.8 billion at the end of Q2, down 39% from $79.6 billion a year earlier. Despite $15.1 billion in net inflows over the same period, market depreciation erased those gains and more.

The math is stark: investors added $15.1 billion while $45.8 billion in market depreciation wiped out those gains and then some. Q2 alone saw $3.1 billion in net outflows as Bitcoin fell 14% and Ether dropped 25% in the quarter.

BlackRock is targeting $500 million in annual revenue from its digital asset business under its 2030 plan, a more than tenfold increase from the approximately $40 million the firm currently generates. This target implies either a substantial crypto price recovery or a dramatic expansion of AUM through new products and distribution.