BlackRock Stock Sees Bullish Calls Amid Crypto ETF Outflows and Tokenization Push
Wall Street giants JPMorgan and Morgan Stanley are calling a buy on BlackRock stock, despite its recent slide. This bullish sentiment rides on strong earnings and strategic pivots into tokenization and AI infrastructure. Yet, BlackRock's flagship Bitcoin ETF just saw significant outflows, creating a complex market signal.
Rival titans JPMorgan and Morgan Stanley are pushing a bullish narrative on BlackRock ($BLK) stock, upgrading targets even as its share price lags. This divergence highlights a conviction play: big money sees value where the immediate market doesn't, betting on a future surge.
On-chain proxies for traditional markets show a split. Long-term put-call ratios lean bullish, indicating sustained upside bets. However, daily trading data reveals short-term players are hedging, buying protection as the stock continues its slide. Chaikin Money Flow, while still negative, shows sellers' grip weakening, hinting at institutional accumulation.
The bullish thesis rests on BlackRock's Q2 earnings beat and strategic pivots. Beyond strong AUM and revenue, the firm is deep into a DTCC pilot for tokenized collateral alongside JPMorgan and Goldman Sachs. It's also leading a $12 billion debt sale for a Meta-backed AI data center, signaling a major play in the AI build-out.
This institutional conviction clashes with recent crypto market action. BlackRock's IBIT, the largest spot Bitcoin ETF, just shed $202 million in a single session, contributing to a broader $225 million outflow across US spot Bitcoin ETFs. This outflow wave challenges the steady demand narrative for institutional crypto products.
The market has yet to price in BlackRock's new ventures, with $BLK stock up only 7.44% last month and still down for the year, while competitors gained over 20%. The question remains: will the TradFi giants' bullish calls override crypto ETF headwinds, or is the market signaling deeper issues?