BlackRock has reversed its recent trend of selling cryptocurrencies, withdrawing a combined $135 million in Bitcoin and $15.84 million in Ethereum from Coinbase, according to data from Arkham Intelligence. The move marks a notable shift after a string of reported sales linked to BlackRock’s entity wallet over the past few weeks.
The data showed the transfers originated from addresses associated with BlackRock’s crypto entity, moving significant amounts of Bitcoin and Ethereum off Coinbase Prime. In total, the transfers, which occurred in several tranches, moved 2,086 BTC into an address linked to BlackRock’s IBIT Bitcoin ETF. The wealth manager also made a single transfer of 8,500 ETH into its iShares Ethereum Trust ETF.
BlackRock’s Recent Bitcoin and Ethereum Sell Streak
The data comes amid a series of reported sell transactions involving BlackRock-controlled wallets. Over the past month, multiple on-chain trackers flagged Bitcoin outflows from BlackRock wallets that appeared to reflect selling activity.
Just yesterday, BlackRock moved 1,133 BTC, worth $75 million, and 7.55 ETH, worth about $14.46 million to Coinbase Prime. Four days ago, the firm moved a whopping 2,563 BTC off Coinbase, at a combined worth of $173 million. On the same day, almost 50,000 ETH, worth $97.21 million, left BlackRock’s ETHA Ethereum ETF.
In mid-February, another outflow day saw 1,270 Bitcoin, worth $85 million, moving out of a BlackRock address in a move consistent with sales. Additional flagged transactions indicated a further outflow of 15,409 ETH, worth $30.2 million, over two transfers, prompting speculation that BlackRock may have been carving into its holdings amid market volatility.
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BlackRock’s Bitcoin and Ethereum ETF Flow Context
These Bitcoin and Ethereum sales occurred in parallel with fluctuations in BlackRock’s Institutional Bitcoin ETF (IBIT) and Ethereum ETF (ETHA) flows. IBIT has consistently experienced outflows in February with very few inflow days, as shareholders adjust positions in response to price fluctuations and overall sentiment in digital markets.
In the meantime, Bitcoin trades near the mid-$60,000 range after a weekend sell-off pushed price below key support levels, triggering leveraged liquidations and increasing risk aversion among traders. Ethereum and other major altcoins also faced downward pressure amid broader risk asset weakness.
As a result, shareholders readjusted their holdings of the spot ETFs. On average, the spot Bitcoin ETF bled $50 million in most trading days in February. ETHA also closed most days in the red in February. On average, the spot Ethereum ETF posted $27.47 million in outflows every trading day in the month.
The Latest On-Chain Shift
Meanwhile, BlackRock’s most recent retracement indicates that shareholder demand for the IBIT and ETHA ETFs has increased. When ETFs post outflows, custodians must reduce their holdings of the underlying assets by offloading to exchanges. In contrast, when demand increases and ETF inflows heighten, BlackRock must increase its Bitcoin and Ethereum holdings to create new shares for ETF participants.
Notably, market watchers will monitor how BlackRock’s ETF flows evolve alongside on-chain activity. If BlackRock continues moving assets off exchanges, it may suggest increasing confidence in the crypto markets. Conversely, renewed selling alongside net outflows from IBIT and ETHA would signal a different risk posture.
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The CoinRemark Team
Temitope Olajide
