BlackRock has crossed another milestone with skyrocketing fortunes. According to the company’s third-quarter results, its assets under management have hit an all-time high of $11.48 trillion.
The rise in AUM comes on the back of a market dominance of exchange-traded funds. The rise in popularity for all ETFs alike, including that of the spot Bitcoin ETFs has buoyed the total assets that Blackrock owns.
BlackRock Hits $11.5 Trillion in AUM
Blackrock’s third quarter’s $11.5 trillion AUM is significantly higher than the second quarter’s $10.65 trillion and last year’s $9.10 trillion.
The $12.5 billion purchase of Global Infrastructure Partners by the New York-based company this week also gave rise to Blackrock’s asset base by over $100 billion. Preqin, a provider of private markets data, is set to be acquired by it for $3.2 billion later this year.
As Reuters highlights, since interest rate hikes increased the attraction of safe-haven assets like cash, asset managers have faced slower inflows in past years. In addition, several investors refrained from making any moves in riskier assets until they had greater clarity on the direction of interest rates.
However, as the economy eases now, the risk appetite of investors has again taken a rise.
Why Is BlackRock Famous Among Investors?
One of the main reasons why BlackRock is so famous in the investment market is that it presents itself as a single location where clients from around the world can make investments in both public and private markets. This year’s stock market boom and the money that started to pour into private and fixed-income funds helped it.
Also, as UnoCrypto reported earlier, institutional investors, such as hedge funds, pension funds, and large investment organizations, have typically been hesitant to make direct investments in Bitcoin due to its volatility and regulatory difficulties.
But now that this ETF’s options have been approved, these big companies can boost their exposure to Bitcoin through a reputable and regulated financial product, which could enhance their market share.