BlackRock Shifts $366M to Bitcoin as 'Digital Gold' Amid Rate Cut Expectations

BlackRock, the world’s largest asset manager, executed a significant reallocation of its cryptocurrency portfolio in late September 2025, shifting $366 million from Ethereum to Bitcoin while simultaneously adding $290 million in Bitcoin on September 3 alone. This move marked a reversal of earlier 2025 trends, during which the firm had accumulated Ethereum at a rate 7.15 times faster than Bitcoin, growing its ETH holdings by 252.3% versus a 35.3% increase in BTC. By September 16, BlackRock’s total crypto assets reached $104.18 billion, with Bitcoin holdings surpassing 757,000 coins ($87.23 billion) and Ethereum holdings reaching 3.68 million tokens ($16.95 billion). The shift reflects growing institutional preference for Bitcoin as a stable reserve asset, particularly amid expectations of Federal Reserve rate cuts, which analysts suggest have spurred renewed demand for “digital gold.”

The reallocation was confirmed by on-chain data from Arkham Intelligence and ETF flow tracking from SoSoValue. On September 3, BlackRock’s Ethereum Trust (ETHA) recorded a $151.39 million outflow, while its Bitcoin Trust (IBIT) saw a $289.84 million inflow. This pattern repeated on September 16, with $17.39 million exiting ETHA and $366.2 million flowing into IBIT. Cumulative Bitcoin ETF inflows for the week ending September 13 totaled $2.3 billion, with BlackRock and Fidelity leading the trend. Meanwhile, Ethereum ETFs, which had attracted $3.87 billion in August, experienced outflows in early September, signaling a shift in institutional strategy.

The market responded to these moves with immediate price adjustments. Bitcoin rebounded to $116,162 by September 12, up 0.54% in 24 hours and 4.95% weekly, while Ethereum dipped to $4,306, down 3.29% daily. Analysts attributed Bitcoin’s resilience to its role as a hedge against macroeconomic risks, particularly with markets pricing an 87% probability of a Fed rate cut in September. “Bitcoin’s capped supply and liquidity profile align with institutional demand for stability,” noted one expert, contrasting with Ethereum’s greater volatility and regulatory uncertainties.

BlackRock’s actions underscore a broader trend of institutional capital favoring Bitcoin over altcoins. By September 16, the firm’s Bitcoin ETF had accumulated $58 billion in net inflows since its launch, compared to $12.97 billion for its Ethereum counterpart. This disparity highlights Bitcoin’s dominance in institutional portfolios, despite Ethereum’s robust ecosystem growth. On-chain data also revealed strategic rebalancing earlier in the month, including a $151 million Ethereum sale and $290 million Bitcoin purchase on September 3, followed by a $366 million ETH-to-BTC reallocation by September 12.

The shift has implications for the broader crypto market. While Ethereum’s price action showed resilience—up 4.01% in 24 hours and 8.05% weekly—its institutional appeal lagged behind Bitcoin’s. Analysts caution that Ethereum’s outflows reflect concerns over regulatory clarity and its role as a secondary growth asset. “Institutions treat Bitcoin as the core digital reserve, with Ethereum viewed as a complementary play,” said one observer. BlackRock’s consistent trimming of Ethereum holdings since mid-2025 further reinforces this dynamic, positioning Bitcoin as the preferred asset in a macroeconomic environment favoring risk-on strategies.

Source: [1] Crypto News: BlackRock Added 2,270 Bitcoin, 78,922 … (https://www.thecoinrepublic.com/2025/09/17/crypto-news-blackrock-added-2270-bitcoin-78922-ethereum/) [2] iShares Ethereum Trust ETF | ETHA - BlackRock (https://www.blackrock.com/us/individual/products/337614/ishares-ethereum-trust-etf) [3] BlackRock Cuts $151M ETH Exposure, Adds $290M in Bitcoin (https://www.thecoinrepublic.com/2025/09/04/blackrock-cuts-151m-eth-exposure-adds-290m-in-bitcoin/) [4] BlackRock Adds $158 Million Ethereum, Fuels Institutional Demand (https://beincrypto.com/ethereum-accumulation-surge-blackrock/) [5] BlackRock Moves $366M Ethereum to Bitcoin Amid Bitcoin Growth (https://coincentral.com/blackrock-moves-366m-from-ethereum-to-bitcoin-amid-strong-bitcoin-growth/) [6] Will Bitcoin Price Explode as BlackRock Swaps ETH … (https://www.thecoinrepublic.com/2025/09/13/will-bitcoin-price-explode-as-blackrock-swaps-eth-for-btc/) [7] BlackRock Sells $151M Ethereum, Buys $290M Bitcoin in … (https://blockonomi.com/blackrock-sells-151m-ethereum-buys-290m-bitcoin-in-strategic-portfolio-shift/) [8] BlackRock Bets Big on Ethereum Over Bitcoin, Signaling A Shift (https://coinedition.com/blackrock-buys-more-ethereum-than-bitcoin-signaling-big-shift-toward-altcoins/)