BlackRock has built an empire on traditional finance — but the firm’s breakout success this decade didn’t come from equities or fixed income. It came from Bitcoin.
Key takeaways
- BlackRock says its Bitcoin ETFs are now the most profitable product family the company operates worldwide.
- IBIT achieved historic growth — controlling over 3% of the BTC supply and generating record annual fee revenue.
- Institutional distribution, not retail hype, is the main force behind the surge in ETF demand.
Cristiano Castro, who oversees business development for BlackRock in Brazil, revealed at a blockchain event in São Paulo that the company’s Bitcoin ETFs are now the most profitable product family BlackRock offers anywhere in the world. Coming from an asset manager with more than $13.4 trillion under control and over 1,400 ETFs, that admission drew immediate attention.
An Internal Forecast That Was Completely Wrong — in a Good Way
The magnitude of the shift wasn’t obvious when the first U.S. spot Bitcoin ETF launched in January 2024. Internally, BlackRock expected strong demand — but not what actually happened. One year later, demand for Bitcoin exposure through IBIT and its international counterparts has grown so aggressively that allocations are nearing $100 billion. Castro described it simply as “far beyond what we modeled internally.”
The U.S. fund, IBIT, crossed the $70 billion mark faster than any fund in ETF history and now controls more than 3% of the entire Bitcoin supply. Fee generation has exploded in parallel, making IBIT the most profitable ETF launch in the company’s history.
Institutions Did the Heavy Lifting
A key reason behind IBIT’s dominance is the nature of the capital flowing in. Once the SEC approved spot Bitcoin ETFs, pension funds, wealth managers and corporations that previously avoided self-custody suddenly had a low-friction way to buy BTC. Rather than targeting crypto-native retail investors, BlackRock leaned into the distribution channels it already owned — and institutions responded.
The momentum also spread internationally. Brazil’s IBIT39 and other BTC-related products built under BlackRock’s umbrella contributed to the asset surge.
Temporary Outflows Don’t Change the Bigger Picture
Recent ETF withdrawals have led to speculation about stalling demand, but Castro dismissed that interpretation. He described ETFs as “liquidity machines” that are designed to absorb selling pressure during volatile periods. Retail investors tend to rotate their capital faster than long-term institutions, he said, and that is exactly what is happening now.
BlackRock’s internal view is that Bitcoin ETFs have already cemented themselves as a long-term business line — not a passing trend.
The idea that Bitcoin would become the strongest profit driver for the world’s largest asset manager would have sounded absurd only a few years ago. Now it is a line item on BlackRock’s balance sheet. The shift suggests that Bitcoin is not just being adopted by Wall Street — it is becoming part of its core business model.
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Source: https://coindoo.com/blackrock-confirms-bitcoin-etfs-are-now-its-most-profitable-business-line/