The crypto market continued its volatility in 2026, with Bitcoin and Ethereum failing to replicate their previous strong performance. Watcher.Guru, citing market data, reported that BlackRock's crypto asset exposure has incurred approximately $13.83 billion in paper losses this year, reflecting that even large institutions are experiencing pressure from this market correction.
The year-to-date decline is close to 20%.
The report shows that BlackRock's crypto portfolio has fallen by approximately 17.65% since 2026. The exposure includes assets such as Bitcoin and Ethereum. The article attributes this decline to overall market weakness rather than short-term fluctuations in a single asset.
Bitcoin surged to a high of $126,080 last October, but now mainly hovers around the $70,000 range. The report notes that its price has fluctuated between $65,000 and $75,000 multiple times, and has failed to regain the $85,000 mark.
Bitcoin's decline dragged down institutional book performance
According to reports, Bitcoin has fallen by more than $17,210 since 2026. Ethereum and other mainstream assets have also come under pressure, causing institutions holding related ETFs or other crypto exposures to face more significant paper drawdowns.
BlackRock entered the crypto ETF market in January 2024 after receiving approval from the U.S. Securities and Exchange Commission. As one of the world's largest asset managers, its products were previously seen as a significant source of incremental funding driving the prices of Bitcoin and Ethereum. Now, with the market weakening, its portfolio performance has become a window into the institution's risk exposure.
Geopolitical tensions and oil prices are seen as sources of pressure.
Watcher.Guru stated in its article that rising oil prices and tensions in the Middle East are key factors contributing to the current pressure on digital assets. The report also mentioned that the failure of the US-Iran peace talks on Tuesday further fueled market risk aversion.
The article also points out that Asian markets have already been the first to bear the brunt of the impact. Against this backdrop, crypto assets lack significant upward momentum in the short term, and the volatility of institutional holdings may continue to widen.
Additional information:The losses mentioned in the article are mainly based on book gains and losses caused by changes in market prices, and do not equate to BlackRock actually selling the relevant assets and recognizing the losses.
