BlackRock’s Crypto AUM Nears $80 Billion in Third Quarter, Up 63% From Prior Quarter

BlackRock’s crypto assets under management neared $80 billion in the third quarter, climbing more than 60% from the previous quarter.

CoinDesk reported on October 14 that BlackRock’s crypto AUM stood at $79.6 billion at the end of September. That was up $30.8 billion, or about 63%, from $48.8 billion at the end of June.

The increase was driven by gains in the value of existing holdings. More specifically, mark-to-market gains tied to the recovery in the crypto market accounted for $22.9 billion of the total increase. Net investor inflows made up the remaining $7.9 billion.

Even so, the figure was still about 23% below the $104 billion recorded at the end of September last year. That reflects the fact that valuation losses from the crypto market downturn in the first half of this year have not been fully recovered.

Over the past 12 months, BlackRock’s crypto-related products saw both investor inflows and a decline in assets under management. The products recorded $6.3 billion in net inflows during that period, but market-price swings reduced valuations by $30.6 billion. In other words, falling asset prices, rather than outflows, were the main reason AUM declined from a year earlier.

BlackRock also generated $39 million in fees and securities-lending revenue from its crypto products in the third quarter.