Bitcoin News Today: BlackRock Abandons Ethereum for Bitcoin's 'Digital Gold' Safety Amid Macro Uncertainty

BlackRock executed a $151 million Ethereum sale on September 3, 2025, simultaneously acquiring $290 million in Bitcoin, signaling a strategic reallocation of its cryptocurrency portfolio. On-chain data from Arkham Intelligence and ETF flow analytics from SoSoValue confirmed the transactions, with BlackRock’s iShares Ethereum Trust (ETHA) reporting a $151.39 million outflow, while its iShares Bitcoin Trust (IBIT) recorded a $289.84 million inflow on the same day title1^[1]. This marked one of the largest single-day ETF redemptions for Ethereum in months and the strongest Bitcoin inflow of the year for BlackRock. The firm’s Ethereum holdings had grown by 252.3% in 2025, compared to a 35.3% increase in Bitcoin holdings, reflecting a prior preference for Ethereum title3^[3]. However, the September 3 shift suggests a recalibration toward Bitcoin’s liquidity and perceived safety amid macroeconomic uncertainty title1^[1].

The market reacted swiftly to the reallocation. Bitcoin fell 2.09% to $109,422, while Ethereum dropped 3.29% to $4,306. Despite the short-term selloff, both assets maintained strong yearly performance, with Bitcoin up over 90% and Ethereum up 77% year-to-date title1^[1]. The price movements underscore the growing influence of institutional flows on crypto markets, where large-scale transactions can drive immediate volatility. BlackRock’s Bitcoin ETF now holds $58 billion in cumulative inflows, compared to $12.97 billion in its Ethereum ETF, widening the gap in institutional exposure between the two leading cryptocurrencies title3^[3].

The timing of the reallocation aligns with heightened expectations for Federal Reserve monetary easing. Markets now price an 87% probability of a September rate cut, fostering renewed demand for risk assets like Bitcoin title3^[3]. Analysts attribute Bitcoin’s recent rally to sustained institutional inflows and macroeconomic optimism tied to dovish Fed signals title1^[1]. CoinSwitch Markets data highlighted that Bitcoin ETFs received $507.5 million in a recent week, with gains partially attributed to rate-cut expectations title3^[3]. This shift reflects Bitcoin’s role as a “digital gold” asset in a low-yield environment, contrasting with Ethereum’s perceived higher risk profile.

BlackRock’s portfolio adjustments follow a broader trend of institutional rebalancing in the crypto space. Earlier in 2025, the firm had accumulated Ethereum at a pace seven times faster than Bitcoin, capitalizing on Ethereum’s ecosystem growth, including layer-2 scaling solutions and smart contract innovations title4^[4]. However, the September reallocation indicates a pivot toward Bitcoin as a store of value, particularly as Ethereum ETFs experienced outflows after a $3.87 billion inflow in August title1^[1]. This dynamic highlights the evolving risk preferences of institutional investors, who may be prioritizing Bitcoin’s maturity and market depth amid regulatory and macroeconomic uncertainties.

The strategic shift also raises questions about Ethereum’s medium-term prospects. While Ethereum’s price remains supported by its technological advancements and decentralized finance (DeFi) infrastructure, the outflows suggest caution among traditional asset managers. BlackRock’s Ethereum holdings, though substantial, now face pressure to demonstrate utility beyond speculative trading title4^[4]. Analysts note that Ethereum’s ability to maintain institutional interest will depend on its capacity to deliver tangible use cases and network improvements, such as EIP-4844 and rollup scalability solutions title4^[4]. For now, the market appears to favor Bitcoin’s established narrative in a climate of anticipated monetary easing.