The figures contrast with BlackRock’s broader business, which posted record assets under management (AUM) of $15.3 trillion after attracting $192 billion in net inflows during the quarter. The company also beat Wall Street expectations with adjusted earnings per share of $13.91 on $7.08 billion in revenue.
BLK shares traded 4.15% higher at £1,068 in pre-market trading Wednesday.
BlackRock’s crypto target
BlackRock is targeting $500 million in annual revenue from the business under its 2030 plan, the firm said in its earnings call.
This would represent an increase of more than tenfold, compared to the $40 million BlackRock currently generates in base fees and securities lending, accounting for less than 1% of the firm’s total fee revenue.
BlackRock has steadily expanded its crypto ETF lineup since listing its spot bitcoin ETF (IBIT) and spot ether ETF (ETHA), in 2024. More recently, the firm introduced the iShares Bitcoin Income ETF (BITY), which seeks to generate income by writing covered call options on bitcoin exposure, offering investors an alternative to simply tracking the cryptocurrency’s price.
The asset manager also manages $60 billion of Circle’s reserves, about one-quarter of the $300 billion stablecoin market, and wants to become the industry’s reserve manager of choice, it added.
BlackRock pointed to 5 billion crypto wallets as a new distribution channel for its traditional investment products during the earnings call.
