BlackRock Bitcoin ETF emerges as firm’s most profitable product line

BlackRock’s U.S. Bitcoin ETF grew to $70B AUM, generating about $245M in annual fees, helping push the firm’s total bitcoin allocations toward $100B across products.

BlackRock’s Bitcoin exchange-traded funds have become the asset management firm’s most profitable product line, according to Cristiano Castro, director of business development at BlackRock Brazil.

The U.S.-listed Bitcoin ETF, launched in January 2024, reached $70 billion in assets within 341 days, generating an estimated $245 million in annual fees, Castro stated. The fund currently holds more than 3% of the total Bitcoin (BTC) supply.

Blackrock Bitcoin ETF expansion

The ETF’s expansion followed regulatory approval in the United States and increased institutional interest in cryptocurrency investment vehicles, according to the company.

BlackRock’s other bitcoin products, including a Brazilian fund and overseas Bitcoin-linked exchange-traded products, have also recorded substantial inflows, contributing to nearly $100 billion in total allocations across the firm’s bitcoin funds, Castro said.

Castro noted that outflows related to price volatility are typical market behavior, and that ETFs provide investors with liquidity and flexibility to manage their positions.

BlackRock’s Strategic Income Opportunities Portfolio recently increased its holdings in the bitcoin ETF by 14%, demonstrating continued institutional confidence in the product, according to company disclosures.

Net inflows to the ETF exceeded $52 billion in its first year, outpacing other ETF launches over the past decade. The scale of adoption exceeded internal company forecasts, BlackRock reported.

BlackRock manages more than 1,400 ETFs globally and holds over $13.4 trillion in assets under management, according to company data.