BlackRock’s AUM Soars to $10.6T Following Bitcoin ETF Boost

Investment management company BlackRock has cemented its global leading position as it broke a new record of holding $10.6 trillion in assets under management (AUM). This surge is heavily attributed to the firm’s expansion into the Bitcoin exchange-traded fund (ETF) market.

Commenting on the surge, Bloomberg ETF analyst Eric Balchunas explained that the AUM surge is mostly due to rising market charts. He added that steady inflows into assets like the Bitcoin ETF also contributed. BlackRock’s AUM saw about $600 billion trickle in this year alone.

BlackRock assets now at $10.6T, a new all-time world record after $600b in growth alone this year (most from mkts going up, some from flows). They have more aum than Fidelity, CapGroup, Invesco and Franklin COMBINED via @sabrush https://t.co/W73jLwZPon

— Eric Balchunas (@EricBalchunas) July 15, 2024

How Did Bitcoin ETFs Play a Role?

BlackRock has gained prominence in the crypto market through its iShares Bitcoin Trust (IBIT) ETF, which currently holds many bitcoins. This makes BlackRock one of the largest public companies holding BTC.

Since its inception in January, BlackRock’s IBIT has captured investors’ interest across the United States and beyond. The financial product has soaked $83 billion into the asset management company.

Highlighting how ETFs and other assets have impacted the company’s current AUM increase, BlackRock’s CEO Larry Fink said in a statement to Bloomberg:

“Organic growth was driven by private markets, retail active fixed income, and surging flows into our ETFs, which had their best start to a year on record.”

Based on its success in the Bitcoin market, BlackRock is among a number of investment companies filing for a spot Ethereum ETF.

How BTC Benefits

Bitcoin ETFs track Bitcoin price, allowing investors to buy the digital asset within the regulated financial system. Investors’ action of trooping into the ETF market has contributed to BTC’s price increase year-to-date (YTD). At the start of the year, the leading cryptocurrency traded at around $42,500.

Fast-forward to the present, BTC value has soared to $63,100, representing a 48% increase from the beginning of the year to date.