Bitcoin News Today: BlackRock Sells ETH, Buys BTC as Fed Rate Hopes Fuel Institutional Shift

BlackRock, the world’s largest asset manager, executed a significant $244 million reallocation of its cryptocurrency portfolio on September 3, 2025, selling $151 million in Ethereum (ETH) while simultaneously purchasing $290 million in Bitcoin (BTC). This strategic shift, confirmed by on-chain analytics from Arkham Intelligence and ETF flow data from SoSoValue, reflects evolving institutional sentiment and anticipation of Federal Reserve rate cuts BlackRock Sells $151M Ethereum, Buys $290M Bitcoin in …^[1]. The firm’s iShares Ethereum Trust (ETHA) reported a $151.39 million outflow, while its iShares Bitcoin Trust (IBIT) logged a $289.84 million inflow, nearly mirroring the on-chain transfers BlackRock Shifts $151M ETH to Bitcoin with $290M Investment^[2]. The transaction marked one of the largest single-day ETF redemptions for Ethereum and inflows for Bitcoin in months, underscoring BlackRock’s growing preference for Bitcoin’s liquidity and perceived safety amid macroeconomic uncertainty BlackRock Cuts $151M ETH Exposure, Adds $290M in Bitcoin^[3].

The move follows a year of aggressive accumulation in both cryptocurrencies. By September 3, BlackRock’s Bitcoin holdings had grown by 35.3% to 747,469 BTC (valued at $82.92 billion), while Ethereum positions surged 252.3% to 3.77 million ETH ($16.65 billion) BlackRock Sells $151M Ethereum, Buys $290M Bitcoin in …^[1]. This rapid ETH accumulation—seven times faster than BTC growth—indicates a prior strategic tilt toward Ethereum. However, the recent reversal highlights shifting priorities, with Bitcoin ETFs now dominating inflows. BlackRock’s IBIT accounted for nearly $290 million of the $332.7 million in Bitcoin ETF inflows for the week, compared to Ethereum ETFs’ $135 million outflows BlackRock Cuts $151M ETH Exposure, Adds $290M in Bitcoin^[3].

Market reactions were immediate. Bitcoin dropped 2.09% to $109,422, while Ethereum fell 3.29% to $4,306, reflecting heightened sensitivity to institutional flows. Despite the short-term decline, both assets maintained strong annual performance, with Bitcoin up over 90% and Ethereum up 77% year-to-date BlackRock Sells $151M Ethereum, Buys $290M Bitcoin in …^[1]. Analysts attribute the volatility to the interplay between institutional positioning and broader macroeconomic expectations. The Federal Reserve’s 87% probability of a September rate cut has spurred renewed demand for Bitcoin as a “digital gold” asset, with ETF inflows linked to macroeconomic optimism BlackRock Cuts $151M ETH Exposure, Adds $290M in Bitcoin^[3].

The Fed’s dovish signals have amplified Bitcoin’s appeal among institutional investors. A recent market report cited Bitcoin’s rally as driven by “sustained institutional inflows and macroeconomic optimism” following signals of easing monetary policy BlackRock Cuts $151M ETH Exposure, Adds $290M in Bitcoin^[3]. CoinSwitch Markets data further highlights this trend, noting $507.5 million in Bitcoin ETF inflows during a recent week, partly attributed to rate-cut expectations. Meanwhile, Ethereum’s outflows suggest caution toward altcoins, with traditional asset managers favoring Bitcoin’s established market dynamics BlackRock Sells $151M Ethereum, Buys $290M Bitcoin in …^[1].

BlackRock’s Bitcoin ETF now holds $58 billion in cumulative net inflows, dwarfing its Ethereum ETF’s $12.97 billion. This widening gap underscores Bitcoin’s dominance in institutional portfolios, a trend likely to persist if new catalysts for Ethereum fail to emerge BlackRock Cuts $151M ETH Exposure, Adds $290M in Bitcoin^[3]. The firm’s rebalancing also aligns with broader industry shifts, as Bitcoin ETFs collectively reversed August’s $751 million outflows, posting $332.7 million in net inflows for the week BlackRock Sells $151M Ethereum, Buys $290M Bitcoin in …^[1]. While Ethereum’s long-term fundamentals remain robust, the immediate rotation reflects a preference for Bitcoin’s perceived stability in a volatile market environment.

---