BlackRock's crypto funds had a much better third quarter than first half of the year but they still have a long way to go to recover the assets lost during the broader crypto market downturn.
The asset manager reported $79.6 billion in digital assets under management at the end of September, a 63% jump from $48.8 billion at the end of June, according to its third-quarter earnings report released Wednesday.
Investors added $7.9 billion to BlackRock's digital asset products during the quarter, more than making up for the roughly $2.2 billion they withdrew during the first six months of 2026.
The reversal came as crypto markets recovered from a slump earlier this year. Bitcoin and other cryptocurrencies had faced pressure during the first half of the year, weighing on the value of funds that hold them. The third-quarter recovery gave those funds a lift, while renewed investor demand added to their assets.
Rising crypto prices did most of the heavy lifting. Of the $30.8 billion BlackRock added in digital assets during the quarter, $22.9 billion came from market gains, while investors contributed another $7.9 billion.
Even after the rebound, BlackRock's crypto holdings remain 23% below the nearly $104 billion it managed a year ago.
That gap isn't the result of investors abandoning its products. Over the past 12 months, BlackRock's digital asset funds attracted $6.3 billion in net new money. But declines in the market value of those assets erased $30.6 billion over the same period.
The figures offer a reminder of how much BlackRock's crypto business depends on the price of the assets its funds hold, even as investors continue to put money into them.
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