Crypto: BlackRock's ETFs Bounce Back 63%, Far from 2025 Peak

Money never sleeps. On Wednesday, October 14, BlackRock unveiled its third-quarter results. The asset management giant reported $79.6 billion in digital assets, a 63% jump in three months. This creates an illusion in a market that has just plunged again after U.S. inflation.{#h-}

Key Points of This Article:

• BlackRock reported $79.6 billion in digital assets at the end of September, up from $48.8 billion three months earlier.
• The third quarter recorded $7.9 billion in net inflows, compared to $2.2 billion in outflows in the first half of the year.
• Price increases accounted for $22.9 billion of the $30.8 billion gained, more than clients did.
• Despite the rebound, assets remain 23% below the $104 billion from a year ago.

The Market Did Most of the Work

In reality, this rebound is due as much to price increases as to clients. According to the group's quarterly statement, its digital products captured $7.9 billion in net inflows between July and September. This amount erases the $2.2 billion withdrawn in the first half of the year. The market had weighed down the valuation of the funds. Thus, digital assets under management rose from $48.8 billion at the end of June to $79.6 billion at the end of September.

However, the flows tell only a quarter of the story. Of the $30.8 billion gained in the quarter, $22.9 billion came from price increases, with Bitcoin having surpassed $80,000. Higher assets also mean higher revenues. The giant's digital products generated $39 million in fees and securities lending revenue during the quarter. A modest sum for a firm that weighs around $14 trillion in total, according to its annual letter.

On its part, the iShares Bitcoin Trust (IBIT) is not given any separate details in the statement. For reference, this fund dominates its market. According to a survey by BestBrokers, IBIT held 785,635 bitcoins in the third quarter, accounting for nearly two-thirds of the combined American spot ETFs.

Twelve Months Later, the Bill Remains

However, the road remains long to the 2025 peak. The group's assets are still 23% below the approximately $104 billion from a year ago. This is because the drop in prices has wiped out $30.6 billion over twelve months. In contrast, clients added $6.3 billion in fresh money. This situation highlights how much this activity depends on asset prices, even when investor loyalty does not wane.

In practice, the parallel holds for the entire sector. According to data from SoSoValue, reported by our colleagues at 24/7 Wall St, American spot bitcoin ETFs captured only $985 million between January and the end of September. The $6.3 billion in the third quarter was therefore not enough to cover the outflows from the first half of the year. And October has started poorly, with over $400 million in net outflows in the first two weeks, according to Farside Investors. This observation is shared notably by JPMorgan, whose analysis of the 2026 flows remains far from the promised record.

The fourth quarter remains. Finally launched, it starts under bad auspices. This Wednesday, U.S. inflation accelerated again, sending the king of cryptocurrencies back around $83,000. To return to its $104 billion from a year ago, BlackRock will therefore need a solid market for longer than three months. The bull market that Michael Saylor promises at $100,000 would already provide a significant boost.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.