BlackRock Resumes Ethereum Accumulation After $27.2 Million Purchase

BlackRock, the world's largest asset manager, has resumed its accumulation of Ethereum (ETH), reversing earlier indications that the firm was reducing its exposure to the second-ranked cryptocurrency. On June 24, BlackRock withdrew over 11,000 ETH, valued at approximately $27.2 million, from Coinbase Prime, according to blockchain data from Arkham Intel. The transfers were made in two parts: the first involved 4,224 ETH worth $10.28 million, and the second involved 6,961 ETH valued at $16.92 million, both originating from Coinbase Prime’s hot wallet and sent to a wallet tied to BlackRock’s Ethereum ETF (ETHA).

This move is particularly significant as it follows a transfer of 9,928 ETH worth around $24.15 million from BlackRock’s ETF wallet to Coinbase Prime just a day earlier, on June 23. This earlier transfer had sparked speculation about profit-taking or rebalancing. However, the subsequent accumulation suggests a renewed strategy focused on increasing Ethereum holdings. This marks one of BlackRock’s largest Ethereum purchases in recent weeks, following a $19.7 million outflow from its spot Ethereum ETF on June 20, which was the first outflow after 30 consecutive days of inflows and the largest among all Ethereum ETFs, contributing to a net market outflow of $11.3 million.

BlackRock’s renewed buying comes at a time when institutional crypto activity is rebounding after a market-wide selloff driven by geopolitical tensions in the Middle East. The market turned bullish on Monday after a ceasefire was announced between Israel and Iran, helping Bitcoin (BTC) reclaim the $105,000 level. As of the latest data, Ethereum was trading at $2,444, up over 6% in the past 24 hours but still down nearly 2% over the past week. Technically, Ethereum’s outlook remains mixed, trading below its 50-day simple moving average (SMA) of $2,526.24, indicating short-term weakness, but still above the 200-day SMA at $2,364.00, signaling a longer-term bullish bias. The 14-day relative strength index (RSI) stands at 46.58, reflecting neutral momentum in line with overall market sentiment.

BlackRock’s decision to resume buying Ethereum indicates a renewed interest in the cryptocurrency market. This move suggests that the investment giant may be diversifying its cryptocurrency holdings or sees potential in Ethereum’s technological advancements and use cases, such as its smart contract capabilities and role in decentralized finance (DeFi) applications. The continued investment in cryptocurrencies by BlackRock and other institutions is likely to have a stabilizing effect on the market, reducing volatility and increasing liquidity. This could attract more retail investors and further drive the adoption of digital assets. The involvement of major asset managers like BlackRock is also likely to bring greater regulatory clarity and legitimacy to the cryptocurrency market, as these institutions have a vested interest in ensuring that the sector operates within a well-defined legal framework.