In Q1 2025, BlackRock's crypto ETFs, including iShares Bitcoin Trust and iShares Ethereum Trust, saw a significant decline in assets. This report highlights changes in market sentiments.
Decline of BlackRock's Crypto ETFs
According to the company's report, $3 billion was raised in the first quarter, which is an 83% decrease compared to Q4 2024. This sharp decline affects two crypto ETFs leading their peers.
Trump's Hype Impact
The company's data suggests that significant inflows preceded Trump's expected arrival in the White House in Q1 2025. Anticipation surrounding his victory led to a surge in interest in crypto investments towards the end of 2024.
Growth Prospects for Q2 2025
Juan Leon, Senior Investment Strategist at Bitwise, remains optimistic about Q2 2025, suggesting Bitcoin ETFs could see over $3 billion in inflows. BlackRock's CEO Larry Fink supports this view, noting the potential for market change with a more favorable regulatory environment.
Despite the current decline, demand for BlackRock's crypto ETFs remains significant, which may signal a potential recovery in the coming quarters.
