- Bitcoin ETF frenzy: BlackRock’s new iShares Bitcoin Trust (IBIT) has exploded to roughly $90–95 billion in assets, making it one of the largest U.S. ETFs. Bitcoin itself recently peaked near $125K and trades around $112K on Oct 12, 2025 [1]. Analysts are highly bullish: Standard Chartered sees $135K “near term” and even $200K in a bull case; JPMorgan raised its 2025-year-end Bitcoin forecast to $165K.
- AI ETF boom: BlackRock’s iShares A.I. Innovation & Tech Active ETF (ticker BAI) – launched Oct. 2024 [2] – is riding the AI hype. Its net asset value is about $34.1 and the fund is up ~33% YTD. BlackRock calls AI a “mega force” with broad, long-term implications [3]. The fund’s top holdings include Nvidia, Broadcom, Microsoft and Meta, and its net expense ratio is 0.55% [4].
- Infrastructure megadeals: BlackRock’s Global Infrastructure Partners (GIP) arm is closing in on massive deals. It’s reported to be near a ~$40 billion agreement to buy Aligned Data Centers (major cloud/AI data-center operator). GIP also won Minnesota approval for a $6.2 billion buyout of utility Allete and is in advanced talks for a ~$38 billion takeover of renewable-power company AES Corp.. These moves would secure power and land for AI data centers.
- Stock performance & outlook: BlackRock (NYSE: BLK) shares are trading around $1,130 (Oct. 12), recently down ~3% but still near their 52-week high. Citigroup lifted its price target to $1,350, and “Mad Money” host Jim Cramer added BLK to his “top stocks to watch,” citing these AI and infrastructure initiatives. Analysts note BLK has gained ~13% in 2025, reflecting confidence in its new bets.
Delving deeper, experts emphasize that BlackRock’s ecosystem is threading together AI, crypto and energy. BlackRock CEO Larry Fink has explicitly linked high interest rates and a weaker dollar to crypto adoption, warning that without policy changes the dollar could lose ground to digital currencies. In fact, in late 2024 BlackRock’s own analysts suggested investors consider up to a 2% Bitcoin allocation [5]. GIP’s deals are seen as strategic pivots: Aligned Data Centers gives BlackRock land and power capacity for hyperscale AI; AES would supply green power to Microsoft, Meta and Google data centers.
Bitcoin and Crypto: Record Highs & ETF Inflows
Bitcoin has surged to new peaks (above $125K in early Oct) on massive demand [6]. One investor letter quipped: “Bitcoin is the hurdle rate… the next 12 weeks are going to be very fun for bitcoin holders,” reflecting frothy sentiment [7]. Globally, crypto ETFs drew a record $5.95 billion inflow in the week to Oct 4, 2025 [8], as Bitcoin hit $126K (Oct. 5) [9]. U.S. crypto ETFs led with $5B of that, mainly into Bitcoin ($3.55B) and Ether ($1.48B) funds [10]. CoinShares’ research head James Butterfill observes that this “high level of investment highlights the growing recognition of digital assets as an alternative in times of uncertainty” [11].
BlackRock’s IBIT Bitcoin ETF has been the biggest beneficiary of this craze. About $1 billion poured into Bitcoin ETFs in one recent 5-day span (late Sept – early Oct), and IBIT now sits at ~$90–95B AUM. Its share price doubled on the “Uptober” rally. Bloomberg ETF analyst Eric Balchunas notes IBIT may break into the Top 10 U.S. ETFs by 2026, saying it’s only “about $50 billion away” from that milestone. Meanwhile, even crypto skeptics see BlackRock’s move as seismic: by year-end, Morgan Stanley’s bitcoin forecast is a lofty $165K, and Standard Chartered is eyeing $200K in a bull scenario.
Despite the euphoria, experts still caution. BlackRock’s 2024 report warned that Bitcoin is “highly volatile and vulnerable to sharp selloffs,” and recommended a 2% portfolio limit [12]. But the broad trend is clear: demand for Bitcoin ETFs is fueling both crypto and BlackRock’s growth. As Reuters noted, safer assets like gold are also rallying, but digital assets have surged alongside them amid a weaker dollar and macro uncertainty [13].
AI and Thematics: BlackRock’s Vision
BlackRock has aggressively expanded into AI-themed funds. In Oct 2024 it launched two new active ETFs targeting AI and tech (including BAI) [14] [15]. The firm calls AI “a mega force with broad investing implications” [16] and positions these ETFs to “seize outsized and overlooked opportunities across the full stack of AI and advanced technologies,” says Tony Kim, BlackRock’s head of tech equity [17]. BAI’s portfolio spans 39 leading AI/tech firms (Nvidia, Broadcom, Microsoft, Meta, Oracle, etc.), all key beneficiaries of the AI boom [18].
Fund flows and performance underscore investor interest. BAI’s NAV of $34.11 (Oct. 10) is down slightly from its recent high, but year-to-date it’s up 32.9%. By contrast, broad technology and growth funds have also surged: BAI’s parent asset class (software, semis, etc.) is near all-time highs after the September rally. BlackRock’s overall iShares ETF franchise is massive (about $4.2 trillion AUM as of Sept 2024 [19]) and continues to draw flows as U.S. stocks rally.
Analysts note that BlackRock’s stock is riding this momentum. Citigroup’s price target hike to $1,350 reflects “future growth in value” from the Aligned Data Centers deal and other strategic investments. Jim Cramer highlighted BlackRock among his market picks, specifically citing the ~$40B Aligned acquisition as a catalyst. Overall, BlackRock shares have outperformed peers, rising in 2025 while many rivals lag. The firm’s strong Q3 earnings (due Oct 14) are expected, as inflows into ETFs and alternatives accelerate.
Infrastructure & Energy: Underpinning the AI Boom
BlackRock’s Global Infrastructure Partners is quietly cementing its lead in AI back-end power. The planned $40 billion Aligned Data Centers acquisition (first reported Oct 6) would be one of the largest infrastructure deals ever. Aligned owns 78 U.S. and Latin American data centers, with ~5 GW of power capacity – essential for AI compute. This deal follows GIP’s 2021 buyout of data center firm CyrusOne, and was reportedly backed by partner Mubadala.
Concurrently, GIP in August received regulators’ blessing to take Minnesota utility Allete private (~$6.2B), ensuring grid access for future data centers. Now it’s also in advanced talks to buy AES (a global power provider) for ~$38B. AES operates ~32 GW of generation (50% renewable) and already powers big tech campuses. Analysts say owning AES would give BlackRock a direct play on the tech sector’s electricity demand. Indeed, Reuters notes data-center power needs have drawn funds like GIP into utilities: “AES is the latest trophy” in energy M&A, amid a surge of investment into stable infrastructure.
GIP’s record bolsters BlackRock’s strategic pivot. “Digital infrastructure has become a top target for global investors,” notes AInvest research, and the Aligned deal “signals a strategic bet on AI’s long-term trajectory”. BlackRock’s peers agree GIP is uniquely suited: it formed only in 2024 with ~$170B under management, and took Allete private for $6.2B last year. As one analyst put it, GIP “can effectively manage AES’s complex, global assets,” framing the takeover as a potential “reframing of AES’s path”.
Stock & Strategy Outlook
What does all this mean for BlackRock and its investors? In the near term, BlackRock stock is consolidating gains. BLK closed around $1,132 on Oct 12, down ~3% that day but still near historic highs. Over the next quarters, additional catalysts loom: finalizing the Aligned and AES deals (subject to regulatory approval) would lift earnings and AUM substantially. Citi and other banks assume BlackRock’s AUM growth will remain strong, supporting earnings per share.
Longer term, experts forecast continued growth. BlackRock’s “infrastructure-focused strategy” – combining ETFs, alternative funds and data-center investments – appears to have broad support: its shares have outperformed peers this year. Bernstein and JPMorgan surveys suggest buy ratings. Even skeptics grudgingly admit BlackRock’s vision: Goldman alumnus Anthony Pompliano insists Bitcoin is now “the hurdle rate” that every asset must surpass [20], and Deutsche Bank predicts cryptocurrencies will join gold on central-bank balance sheets by 2030 [21].
Analysts peg fair value above current levels. With Citi at $1,350 and BlackRock’s own report suggesting investors could allocate to Bitcoin (even if just 2%) [22], the sentiment is pro-growth. Bob Pisani of CNBC notes that BlackRock’s multitrillion-dollar Aladdin platform and iShares franchise give it “an unfair advantage” in these tech and crypto trends. As BlackRock CEO Larry Fink himself frames it, ignoring digital assets now risks losing the next wave of global finance.
Bottom line: BlackRock’s bold new bets on AI infrastructure and crypto are already materializing. Its Bitcoin ETF and AI fund are drawing record interest, while its GIP arm lays the groundwork for the next generation of data centers. If Bitcoin nears six figures as predicted and AI computing demand continues to explode, BlackRock’s diversified approach could propel further stock gains. As one expert quipped, BlackRock is “betting on the backbone of AI’s future,” and so far the returns appear to justify that strategy.
Sources: Financial news and analysis from Reuters, CNBC, Yahoo Finance, Bloomberg, TS2.tech, and InsiderMonkey (citing Cramer/Citi) [23], among others. All data current as of Oct 12, 2025.
References
1. www.reuters.com, 2. www.nasdaq.com, 3. www.reuters.com, 4. www.nasdaq.com, 5. www.reuters.com, 6. www.reuters.com, 7. www.reuters.com, 8. www.reuters.com, 9. www.reuters.com, 10. www.reuters.com, 11. www.reuters.com, 12. www.reuters.com, 13. www.reuters.com, 14. www.reuters.com, 15. www.reuters.com, 16. www.reuters.com, 17. www.reuters.com, 18. www.nasdaq.com, 19. www.reuters.com, 20. www.reuters.com, 21. www.reuters.com, 22. www.reuters.com, 23. www.reuters.com
