BlackRock Sees Tokenized ETFs as Gateway to Billions of New Investors

BlackRock Inc. (NYSE: BLK ) stock rose Wednesday after the world’s largest asset manager reported second-quarter results that topped Wall Street expectations, driven by record assets under management, inflows, revenue and earnings.

The company also said it repurchased $450 million of stock during the quarter and increased its quarterly share repurchase authorization to $550 million, lifting its planned 2026 share repurchases to $2 billion.

Revenue, Earnings Beat Estimates Second-quarter revenue increased 31% year over year to $7.08 billion, exceeding the analyst consensus estimate of $6.70 billion.

Adjusted operating income rose 39% to $2.92 billion, while adjusted operating margin expanded to 45.9% from 43.3% a year earlier, marking the company’s highest level in nearly five years.

Adjusted earnings came in at $13.91 per share, ahead of the Street estimate of $12.60.

Assets Under Management Hit Record Assets under management increased 22% year over year to a record $15.34 trillion, while average AUM climbed 24% to $14.85 trillion.

The company said AUM has grown by more than $1 trillion so far in 2026, supported by strong market performance and client inflows.

BlackRock also reported about $110 billion in digital asset-related AUM and said it aims to grow that business into a $500 million annual revenue opportunity by 2030.

Management said the firm is exploring tokenized ETFs, Treasury funds and private market products.

It also noted opportunities across 5 billion digital wallets, a crypto market valued at more than $2 trillion and a stablecoin market exceeding $300 billion.

BlackRock has also filed SEC registrations for tokenized money market fund offerings.

BlackRock executives said tokenized ETFs could dramatically expand the firm’s addressable market by bringing investment products directly into digital wallets.

Management noted there are about 5 billion digital wallets worldwide and described tokenized assets as an entirely new distribution channel that could connect millions of crypto users with traditional investments.

The company said it wants to build a “digital wallet native” asset manager, positioning tokenization as a long-term driver of organic growth rather than simply another digital asset offering.

Management said it wants investors to access iShares ETFs and other long-term investment products directly through digital wallets, positioning tokenization as a major long-term growth opportunity. iShares Continues ETF Leadership The company’s iShares platform surpassed $6 trillion in AUM and generated $178 billion in second-quarter net inflows, contributing to a record first half of the year.

BlackRock said iShares delivered 12% organic base fee growth in 2026 as global ETF adoption continued to expand.

Its active ETF business attracted more than $70 billion in inflows over the past year, making BlackRock the industry’s largest active ETF provider.

The broader active franchise generated $53 billion in net inflows, while the firm’s systematic investing platform doubled to $400 billion in AUM over the past two years.

Management Outlook BlackRock said it expects to return more than $5.7 billion to shareholders in 2026 through dividends and share repurchases, up 16% from 2025.

Management reiterated confidence in sustaining double-digit earnings growth, supported by organic expansion, growth in private markets and technology businesses, higher fee revenue and operating leverage.

The company also reaffirmed its goal of generating more than 30% of total revenue from private markets and technology by 2030.

BLK Price Action: BlackRock shares were up 6.52% at $1092.30 at the time of publication on Wednesday, according to Pro data.

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