Sharp decline in financial flows towards BlackRock's Bitcoin ETF funds in Q1 2025
BlackRock's cryptocurrency exchange-traded funds recorded a significant decline in their performance during the first quarter of 2025, with flows decreasing by over 80% compared to the previous quarter.
This decline followed a strong performance period at the end of 2024.
The overall slowdown in the cryptocurrency market reflects a greater cautious approach from investors amid volatile market conditions.
However, despite this decline, the flows amounting to 3 billion dollars into Bitcoin and Ethereum funds still indicate ongoing interest in digital assets, albeit at a slower pace than in previous periods, according to a report issued by BlackRock.
The decline was directly linked to the recession that affected the prices of major cryptocurrencies at the beginning of the year, leading to a decrease in investors' appetite for risk.
These investments represent only about 2.8% of the total flows of iShares products during that period.
The value of digital assets managed by the company reached approximately 50.3 billion dollars, which is a negligible percentage of BlackRock's total assets amounting to 10 trillion dollars.
The revenues generated from these funds amounted to 34 million dollars, representing less than 1% of the company's long-term revenues.