BlackRock crypto inflows surge 370% in Q2 despite overall net flow slump

The world’s largest asset manager, BlackRock, reported a staggering 370% quarter-over-quarter increase in BlackRock crypto inflows, reaching $14 billion in Q2 2025—up from just $3 billion in Q1.

Despite this explosive growth, the firm’s total net inflows dropped 19% to $68 billion, largely due to a single institutional client withdrawing $52 billion from lower-fee index funds.

The BlackRock crypto inflows now account for 16.5% of the company’s total ETF inflows, a dramatic rise from just 2.8% the previous quarter, according to BlackRock’s quarterly earnings released on Tuesday. This surge shows a shifting tide in investor behavior, with digital assets gaining traction even as traditional markets face turbulence.

Institutional adoption drives BlackRock crypto inflows

The $14 billion influx into BlackRock’s iShares Bitcoin and Ethereum ETFs shows growing institutional confidence in crypto as a legitimate asset class. Analysts suggest that regulatory clarity and the maturation of crypto markets have played a key role in this shift.

“We’re seeing a new wave of institutional investors entering the crypto space, and BlackRock’s ETF products are a preferred gateway,” — Sarah Morton, senior analyst at Bernstein Research.

While BlackRock crypto inflows soared, the firm’s digital assets revenue remains a small fraction of its total business, generating just $40 million in base fees (1% of long-term revenue). Still, this marks an 18% increase from Q1, signaling accelerating momentum.

Net flows slump amid major client redemption

Despite the crypto boom, BlackRock’s overall inflows took a hit after a single institutional client pulled $52 billion from low-fee index funds. The redemption dragged total net flows down to $68 billion, a 19% decline from Q1’s $84 billion.

“Large redemptions like this aren’t uncommon in asset management, but the contrast with crypto’s growth is striking,” — Mark Connors, research lead at 3iQ Digital Assets.

The divergence suggests that while traditional investment vehicles face headwinds, BlackRock crypto inflows are emerging as a bright spot in the company’s portfolio.

BlackRock CEO bullish on digital assets amid global expansion

Larry Fink, BlackRock’s CEO, emphasized the firm’s commitment to digital assets in the earnings call, citing record ETF flows and expansion into emerging markets like India through its Jio BlackRock joint venture.

“We’re attracting a new generation of investors through products like our crypto ETFs,” — Larry Fink, CEO of BlackRock.

The BlackRock crypto inflows surge aligns with Fink’s long-term vision of integrating blockchain-based assets into mainstream finance. With institutional adoption rising and regulatory frameworks solidifying, BlackRock appears poised to remain a dominant force in crypto investment vehicles.