BlackRock’s cryptocurrency portfolio expanded significantly in the third quarter, with digital assets under management climbing 63% to $79.6 billion as investment flows turned positive. However, the total remains 23% below the level seen a year ago, showing that the market recovery has yet to erase earlier losses.

The asset manager’s crypto products bounced back during the July-to-September period after a difficult first half of 2026. Although investors returned and digital asset prices recovered, BlackRock’s holdings have not fully regained the value lost during the broader market downturn.

In its third-quarter earnings report released Wednesday, BlackRock disclosed $79.6 billion in digital assets under management at the end of September, compared with $48.8 billion three months earlier.

The company attracted $7.9 billion in net inflows during the quarter. That more than reversed the roughly $2.2 billion in withdrawals recorded across its digital asset products during the first half of the year.

The recovery followed a rebound in cryptocurrency prices after a difficult start to 2026. Bitcoin (BTC) and other tokens had declined earlier in the year, reducing the value of funds holding those assets. Stronger prices in the third quarter lifted portfolio valuations, while fresh investor contributions provided additional support.

Price appreciation accounted for most of the increase in assets under management. BlackRock’s digital asset holdings grew by $30.8 billion during the quarter, including $22.9 billion from market gains and $7.9 billion from net inflows.

Despite the improvement, the portfolio remains below the nearly $104 billion recorded a year earlier, leaving a gap of approximately 23%.

Investor contributions have remained positive over the longer term. BlackRock’s digital asset products attracted $6.3 billion in net new money over the past 12 months. However, losses in the market value of the underlying assets amounted to $30.6 billion during that period, outweighing the additional investment.

The results illustrate how fluctuations in cryptocurrency prices continue to shape BlackRock’s digital asset business, even as its products draw fresh capital.

The firm, which manages the iShares Bitcoin Trust (IBIT), earned $39 million in quarterly revenue from fees and securities lending associated with its digital asset products.

BlackRock’s earnings release did not provide separate assets-under-management or fund-flow data for its Bitcoin ETF.