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 on Wednesday.
BlackRock’s Crypto Target
BlackRock is targeting $500 million in annual revenue from the business under its 2030 plan, the company said in its earnings call.
This would represent a more than tenfold increase compared to the $40 million BlackRock currently generates in core fees and securities lending, which represents less than 1% of the firm’s total fee income.
BlackRock has steadily expanded its lineup of crypto ETFs since including its Bitcoin Spot ETF (IBIT) and Ether Spot ETF (ETHA), in 2024. Most recently, the company introduced the iShares Bitcoin Income ETF (BITY), which seeks to generate income by writing covered call options on exposure to bitcoin, offering investors an alternative to simply tracking the price of the cryptocurrency.
The asset manager also manages $60 billion of Circle’s reserves, about a quarter of the $300 billion stablecoin market, and wants to become the industry’s preferred reserve manager, he added.
BlackRock flagged 5 billion crypto wallets as a new distribution channel for its traditional investment products during the earnings call.
