- BlackRock crypto ETFs earn $260M, with $218M from Bitcoin and $42M from Ether products.
- Bitcoin ETF nears $85B AUM, holding 57.5% of US spot Bitcoin ETF market share.
- ETF inflows may fuel Bitcoin rallies; inclusion in 401(k)s could push BTC toward $200K.
BlackRock’s cryptocurrency-focused exchange-traded funds (ETFs) have emerged as a highly profitable venture, generating $260 million in annualized revenue, according to recent data shared by Leon Waidmann, head of research at the nonprofit Onchain Foundation.
The revenue includes $218 million from Bitcoin ETFs and $42 million from Ether-based products.
The performance underscores the growing role of regulated crypto investment products in institutional finance.
BlackRock’s success is being closely watched by other traditional asset managers as a potential benchmark for launching similar offerings in the rapidly evolving digital asset sector.
Bitcoin and Ether ETFs as institutional gateways
Analysts highlight the significance of BlackRock’s ETFs in positioning cryptocurrencies as a serious asset class within traditional finance.
Waidmann likened the ETFs’ trajectory to Amazon’s early business model, noting that the funds provide a practical entry point into the crypto ecosystem for institutional investors and retirement accounts.
“This isn’t experimentation anymore,” Waidmann said. “The world’s largest asset manager has proven that crypto is a serious profit center. That’s a quarter-billion-dollar business, built almost overnight. For comparison, many fintech unicorns don’t make that in a decade.”
The performance of these ETFs may encourage more institutional players to enter the crypto market, extending the current market cycle beyond the typical four-year Bitcoin halving-driven patterns.
Analysts suggest that inflows from corporate treasuries and ETF products could continue to drive demand for both Bitcoin and Ether.
Market impact and fund growth
BlackRock’s Bitcoin ETF is approaching a significant milestone, with total assets under management (AUM) nearing $85 billion.
This accounts for approximately 57.5% of the total US spot Bitcoin ETF market, according to blockchain data from Dune.
By comparison, Fidelity’s Bitcoin ETF holds $22.8 billion, representing 15.4% of market share, making it the second-largest US spot Bitcoin ETF.
The rapid growth of BlackRock’s fund is noteworthy given its short history, debuting on January 11, 2024.
In less than two years, it has climbed from being the 31st largest fund across both crypto and traditional ETFs to the 22nd largest, according to VettaFi.
Market analysts are optimistic that continued ETF inflows could support a renewed rally in Bitcoin prices.
Ryan Lee, chief analyst at Bitget exchange, suggested that the institutional appetite for crypto ETFs helps establish a bullish floor for risk assets, reinforcing a “buy the dip” strategy amid ongoing macroeconomic and policy uncertainty.
Additionally, there is speculation that the inclusion of cryptocurrency in US 401(k) retirement plans could further bolster demand for Bitcoin, with some projections estimating potential price targets as high as $200,000 by year-end, according to André Dragosch, head of European research at crypto asset manager Bitwise.
BlackRock’s crypto ETFs illustrate the increasing intersection of traditional finance with the digital asset market.
The funds’ performance demonstrates not only the profitability of regulated crypto products but also their capacity to attract institutional capital and provide a structured entry point for investors navigating the evolving crypto landscape.
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