During BlackRock’s quarterly earnings call yesterday, CFO Martin Small said the group aims to earn $500 million in annual revenues from the digital asset sector by 2030. The company has the leading Bitcoin and Ethereum ETFs (IBIT and ETHA) as well as one of the top tokenized money market funds in BUIDL. Despite the steep decline in crypto prices, it has $110 billion in assets under management, which represents almost 5% of the total crypto market capitalization of $2.3 trillion (per CoinGecko).
Mr Small sees digital wallet holders as potential new investors for BlackRock, so they represent a fertile area for organic growth. While he mentioned 5 billion in digital wallets, those won’t represent people as many are for bots and people tend to have multiple wallet addresses. Last year a16zcrypto estimated 40 to 70 million monthly active users and 716 million who own crypto.
“They’re all potential new users of model portfolios, SMAs, and managed accounts in tokenized format. We want to build a digital wallet native asset manager,” he said.
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