BlackRock, the world's largest asset manager with over $11.5 trillion in assets under management, has revealed an ambitious plan to expand its presence in the cryptocurrency sector. By 2030, BlackRock targets overseeing $50 billion in crypto assets, emphasizing a strategic pivot towards digital and decentralized finance.
This plan builds upon the success of the iShares Bitcoin Trust (IBIT), launched in early 2024, which quickly ascended to become one of the largest Bitcoin exchange-traded funds worldwide. IBIT garnered $37 billion in investments within its first year and recently exceeded $72.5 billion in assets, marking the fastest growth ever for an ETF and signaling strong institutional interest in Bitcoin.
BlackRock’s broader crypto strategy includes diversifying into Ethereum via the iShares Ethereum Trust (ETHA), which has achieved over $5 billion in inflows, and exploring tokenized real-world assets through its BUIDL fund. This fund, amounting to nearly $2.9 billion, encompasses tokenized U.S. Treasury products and engages with blockchains such as Ethereum, Solana, and Avalanche.
CEO Larry Fink emphasized the transformative potential of tokenization and decentralized finance in reshaping capital markets. He projected that Bitcoin could reach price levels between $500,000 and $700,000 over the next decade, driven by factors such as rising government debt, budget deficits, and declining confidence in the U.S. dollar. Fink highlighted that decentralized assets offer operational advantages including faster settlement times and enhanced transparency.
In addition to crypto, BlackRock plans to grow its insurance business to manage $700 billion in assets by 2030, leveraging digital technologies and data analytics to innovate insurance products and services.