Bitcoin News Today: BlackRock Moves $664M Bitcoin Ethereum as ETF Outflows Surge

BlackRock, the world’s largest asset manager, has stirred concern in the cryptocurrency market after transferring $664 million worth of Bitcoin and Ethereum to Coinbase Prime on August 5. Blockchain analytics firm Arkham Intelligence confirmed that the firm moved 2,544 Bitcoin and 101,975 Ethereum, valued at approximately $292 million and $372 million, respectively. These transfers were made in batches of 300 BTC and 10,000 ETH, signaling a significant on-chain activity from the firm’s cold storage wallets [1].

The timing of the transfers coincided with a surge in outflows from BlackRock’s Bitcoin and Ethereum ETFs, including the iShares Bitcoin Trust (IBIT) and the iShares Ethereum Trust (ETHA). BlackRock’s IBIT recorded outflows of $292 million, while its ETHA ETF experienced a larger outflow of $375 million, according to Farside data [1]. These outflows reflect broader struggles in the ETF market and have added downward pressure to both Bitcoin and Ethereum prices.

Bitcoin and Ethereum have both seen significant declines in recent days. As of August 6, Bitcoin was trading at just over $114,000, down 3.4% in the previous week. Ethereum, meanwhile, fell to $3,629, a 4.51% drop. The overall cryptocurrency market capitalization has also declined by 5.3% from its peak at the beginning of the year, indicating a broader pullback across the market [1].

Although BlackRock has not officially confirmed any intent to sell the transferred assets, moving large amounts of crypto to an exchange is often interpreted as a sign of potential liquidation. Historically, such transfers from cold storage to an exchange have been linked to asset sales. This has led analysts to speculate that BlackRock may be re-evaluating its exposure to cryptocurrencies amid the ongoing market volatility [1].

Despite the recent outflows and asset transfers, BlackRock remains one of the largest institutional holders of Bitcoin and Ethereum. The firm still holds approximately 741,000 BTC, valued at around $84.5 billion, and 3 million ETH, worth about $11 billion. These holdings underscore BlackRock’s continued influence in the crypto market, regardless of the current downturn [1].

The market is now closely watching BlackRock’s next moves. While some experts believe the transfer could be a short-term rebalancing, others argue it may signal a strategic shift away from crypto exposure. Given the firm’s size and market influence, its decisions are likely to have a lasting impact on Bitcoin and Ethereum prices [1].

Source: [1] BlackRock Sparks Panic: $664M in Bitcoin and Ethereum Moved as ETF Outflows Surge – https://thebitjournal.com/blackrock-bitcoin-and-ethereum-moves-664m-shift/