BlackRock Sells $561 Million Bitcoin Buys $69.25 Million Ethereum

BlackRock, the world’s largest asset manager, has made a significant move in the cryptocurrency market by selling approximately $561 million worth of Bitcoin and using the proceeds to purchase Ethereum. This transaction, which involved the liquidation of 5,362 BTC, was executed through the Coinbase Prime institutional platform over the course of several days. The first notable transaction occurred on June 2 at 10:56 UTC, when BlackRock moved 300 BTC worth $31.3 million to Coinbase. This was followed by a series of transactions, including multiple 300 BTC batches, one transaction of 212 BTC, and another of 49 BTC.

While offloading Bitcoin, BlackRock simultaneously acquired Ethereum. During this period, the firm withdrew 27,241 ETH from Coinbase, valued at $69.25 million. This dual action of selling Bitcoin and buying Ethereum suggests a strategic shift in BlackRock's investment strategy, indicating a preference for Ethereum over Bitcoin in the current market environment.

The amount of Bitcoin sold by BlackRock aligns closely with the outflow figures recorded by its iShares Bitcoin Trust. On Monday, BlackRock’s Bitcoin spot ETF posted a $130.4 million outflow, and on Friday, May 30, it recorded a $430.8 million outflow, bringing the two-day total to $561 million. This trend of outflows from Bitcoin ETFs coincides with a broader market sentiment shift, as investors grew cautious following Bitcoin's retracement from its all-time high of approximately $112,000 in May. Despite these outflows, BlackRock's total Bitcoin spot ETF flows since inception remain strong at $48.439 billion, with its entire BTC holdings standing at 661,142 tokens, worth approximately $70 billion.

In contrast to the negative trends in the Bitcoin spot ETF market, Ethereum ETFs have shown a different trajectory. Ethereum spot ETFs have maintained 11 consecutive days of positive inflows, with BlackRock contributing significantly to this trend. Yesterday, total Ethereum ETF inflows stood at $78.2 million, with BlackRock contributing $48.4 million. This consistent inflow into Ethereum ETFs, led by BlackRock, highlights the firm's confidence in Ethereum's potential as a long-term investment.

BlackRock's decision to liquidate a substantial amount of Bitcoin and reinvest in Ethereum reflects its assessment of the relative strengths and weaknesses of these two cryptocurrencies. The firm's actions suggest that it views Ethereum as a more promising investment opportunity, given its potential for growth and innovation. This strategic reallocation of assets by BlackRock is likely to influence other institutional investors, who may follow suit in adjusting their cryptocurrency holdings. The move underscores BlackRock's confidence in Ethereum's future prospects and its commitment to the cryptocurrency, despite recent market fluctuations.