BlackRock’s bitcoin boom slows in Q1 2025.

The last several months have been hectic at BlackRock. First, Larry Fink’s annual investor letter arrived in late March. Yesterday, the world’s biggest asset manager reported first-quarter profits.

Each year, BlackRock Chairman and CEO Larry Fink writes a letter openly to investors. We routinely cover Fink and his firm’s issues at #DisruptionBanking. Last year, things changed drastically. One of the most prominent portfolio management software packages is BlackRock’s Aladdin. However, the initial bitcoin Fund was a larger recent success.

Last week, we wrote on BlackRock picking BNY’s blockchain accounting platform and Fink’s digital asset optimism. Fink promotes tokenization. The performance of the iShares Bitcoin Trust ETF (IBIT) contributes.

The SEC authorized BlackRock’s spot bitcoin ETF, iShares Bitcoin Trust (IBIT), in January 2024. IBIT famously gained over $1 billion in AUM in its first week of trading.

What Did Larry Fink Say About BlackRock iShares Bitcoin Trust?
Fink noted BlackRock’s 2009 purchase of Barclays Global Investors (BGI) in his letter. The first iShares ETF company started here. He noted that BlackRock’s ETFs had saved customers $642 million in fees since 2015.

He called IBIT “BlackRock’s U.S.-based Bitcoin exchange-traded product (ETP).” He stated that it was the biggest exchange-traded vehicle ever created, reaching $50 billion in AUM in a year. We think he means the total digital assets ETF portfolio when he says this figure. The iShares Ethereum Trust ETF did well in 2024.

Retail investors were next. Fink said that “more than half of demand for BlackRock’s Bitcoin ETP has been from retail investors,” and that “three-quarters of those investors have never owned an iShares product before.”

Fink blames Europeans, who have barely one-third capital markets investments compared to the majority of Americans. If Europeans use services like Revolut to trade ETFs, he sees significant growth potential.

BlackRock’s First-Quarter 2025 Earnings?
In the earnings report that was published yesterday, Fink stated that client conversations are dominated by uncertainty and anxiety regarding the future of the economy and markets. While strong compared to the initial quarter of the year 2024, the results are nothing special compared to the past quarter.

Recent earnings reports mention ‘crypto’, so take digital assets. BlackRock’s first-quarter 2025 net flow was $3 billion, down from $18 billion in 2024. Fink advises investors to prioritize money market funds and cash. Digital assets as investments may not be as popular as last year. However, bond markets, which are usually steady amid uncertainty, have been chaotic this week.

BlackRock shares rose 2.33 percent Tuesday. Even though stock is down 10% this year.

Since Liberation Day, even Fink, a bullish digital asset investor, has toned down his rhetoric. Markets have struggled to keep up with China tariffs, much alone Trump’s U-turn this week.

The recently launched XRP ETF may have thrilled crypto fans, but markets may not settle down soon. And if other digital assets can retain momentum. Despite growth, BlackRock might have done better in a market thirsty for positive news.