BlackRock Shatters Records with $10.6T AUM, Driven by Surging ETF Inflows

BlackRock has achieved a milestone with its assets under management (AUM) surpassing $10.6 trillion, marking a significant $1.2 trillion increase from the previous year.

The asset manager attributes this growth to substantial inflows into its exchange-traded funds (ETFs). At the start of 2024, BlackRock's ETFs saw record inflows, as highlighted by CEO Larry Fink in the company's quarterly earnings report.

Fink wrote in the asset manager’s quarterly earnings report:

“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.”

iShares Bitcoin Trust (IBIT) The world's largest spot Bitcoin ETF

BlackRock issues the iShares Bitcoin Trust (IBIT), the largest spot Bitcoin ETF globally, holding over $19.4 billion in Bitcoin and commanding a 35.2% market share among US Bitcoin ETFs. The firm's significant purchasing power allows it to influence Bitcoin's price dynamics through its ETF activities.

In the second quarter of 2024, investors purchased $83 billion worth of BlackRock ETF shares, bringing the year-to-date total to over $150 billion. This investor activity contributed to an 8% year-over-year revenue increase and an 11% rise in operating income for BlackRock.

Fink credits BlackRock's growth to its robust relationships with corporations and governments, positioning the firm as a distinguished capital partner in private markets. These partnerships enhance BlackRock's deal flow and sourcing capabilities, further bolstered by advancements in their private markets platform.

Bitcoin ETF Inflows

After experiencing three weeks of outflows, spot Bitcoin ETF inflows turned positive, aiding Bitcoin's price recovery above $60,000. Over $414 million in net positive inflows were recorded for US spot Bitcoin ETFs over two consecutive weeks.

On July 12, BlackRock saw the largest inflows among ETF issuers, attracting over $120 million.

Bitcoin ETF flow table, millions

Market Movements

Recently, Bitcoin experienced its fifth-largest weekly inflow on record, exceeding $1.35 billion. Conversely, short Bitcoin-related investment products saw their largest weekly outflows since April 2024, totalling over $8.6 million.

Despite reaching impressive AUM milestones, BlackRock's influence on market dynamics, particularly through ETFs, raises questions about the broader implications for financial market stability and investor dependency.