BlackRock to Sell Millions in Bitcoin and Ethereum on Coinbase

BlackRock, the top asset management firm, has moved millions of dollars in Bitcoin (BTC) and Ethereum (ETH) to the cryptocurrency exchange Coinbase. This has prompted new discussions about the market’s direction and how institutional investors feel about it. 

Why is BlackRock Offloading its Bitcoin and ETF Holdings?

According to recent data, BlackRock transferred 2,292 BTC, worth nearly $200 million, and 9,976 ETH, valued at about $29.23 million, into Coinbase wallets. These large crypto deposits come at a time when CryptoQuant analyst Woominkyu warns that a bear market is becoming more likely. 

CryptoQuant’s data also indicates that there is increased selling pressure, especially from institutional investors who previously helped drive the crypto market up.

Notably, this large transfer is often interpreted as the sender might want to sell or rebalance its investments. Although these transfers don’t always lead to immediate sales, BlackRock’s recent deposits on Coinbase have raised concerns.  

These transfers also happen alongside significant outflows from Bitcoin and Ethereum exchange-traded funds (ETFs). SoSo Value’s data shows that Bitcoin ETFs lost a net total of $189 million recently. BlackRock also saw outflows in its BTC and ETH ETF. 

Crypto Investment Products See Outflows

As reported by TheCoinRise, crypto investment products from major issuers worldwide registered outflows amounting to $952 million on December 22. These outflows come amid delays to the U.S. Clarity Act, which has prolonged regulatory uncertainty.

According to data, this is the first time in four weeks that global digital asset products have seen outflows. 

BlackRock’s iShares ETFs saw the highest weekly outflows, reaching $798 million. Ethereum also led with $555 million in outflows. Bitcoin followed with outflows reaching $460 million.

BlackRock Offloads More BTC and ETH

In a similar vein, the asset manager moved almost $1 billion in Bitcoin and Ethereum to Coinbase across two consecutive days last month. The deposits included 6,735 BTC, worth $616.09 million, and 64,706 ETH ($119.73 million). BlackRock also offloaded 3,064 BTC and 64,707 ETH, approximately $500 million, into Coinbase. 

Undoubtedly, the transfer represents one of the firm’s largest on-chain transfers in November. Across the two days, the BTC and ETH transfers totalled over $1 billion, reflecting the massive BlackRock crypto ETPs transfers. It is worth noting that Coinbase Prime is BlackRock’s core settlement and execution platform for its spot Bitcoin and Ethereum ETFs.

Recall that in the same month, BlackRock pulled nearly $474 million worth of Bitcoin in a single session. The massive exit added pressure to an already stressed market, where fear and heavy sell-offs dominated trading.