BlackRock Transfers $120M in Bitcoin and Ethereum to Coinbase Amid Market Uncertainty

BlackRock transferred 1,134 Bitcoin and 7,255 Ethereum to Coinbase Prime on January 2, 2026 according to reports. The assets were valued at approximately $101.4 million in BTC and $22.1 million in ETH, totaling over $120 million. The transaction was confirmed by blockchain analytics firms Arkham Intelligence and Lookonchain as data shows.

The move occurred amid significant outflows from U.S. spot Bitcoin ETFs. On December 31, 2025, US spot Bitcoin ETFs recorded $348.10 million in net outflows, with BlackRock's IBIT fund accounting for $99.05 million. Similarly, Ethereum ETFs saw $72.06 million in outflows, with BlackRock's fund losing $21.5 million.

The timing of the transfer coincided with the expiry of $2.2 billion in crypto options. Analysts noted that the "max pain" point for Bitcoin was expected around $88,000, adding downward pressure on the asset.

Why the Move Happened

BlackRock's transfer of such a large sum of crypto to Coinbase has sparked speculation about its strategic positioning. The move follows a broader trend of outflows from BlackRock's digital assets. The firm's IBIT fund, the largest Bitcoin ETF, still holds 770,791 BTC, valued at around $67.4 billion, but recent outflows have raised questions about its long-term stance on crypto.

The move also coincided with a period of heightened volatility in the market. ETF outflows have been negative for eight of the last nine trading days for Bitcoin and five of the last six for Ethereum.

BlackRock has not publicly commented on the reason for the transfer, adding to the uncertainty. Market observers suggest that the firm may be reducing its exposure to crypto as part of a broader strategy or reacting to macroeconomic factors.

How Markets Responded

Bitcoin and Ethereum showed mixed price action following the transfer. Bitcoin rose 1.78% in 24 hours, trading around $89,412. Ethereum climbed 2.25% to approximately $3,048.

However, the broader market sentiment remained cautious. Traders noted that BlackRock's silence on the move has fueled speculation and uncertainty, which could further impact investor confidence.

Glassnode reported that long-term holders of Bitcoin have stopped selling, suggesting some resilience in the market. Nonetheless, ETF flows have shown no renewed demand, indicating ongoing investor wariness.

What Analysts Are Watching

Analysts warn that continued ETF outflows could push Bitcoin below $90,000, possibly toward the $50,000 range. This would trigger broader market panic and raise concerns about the sustainability of crypto as an asset class.

Market observers are also watching the response from institutional investors. BlackRock's move could signal a shift in sentiment among large asset managers, potentially leading to further outflows from crypto.

The expiry of $2.2 billion in crypto options on January 2 is also a key event to monitor. The timing suggests that the market is under pressure from both institutional activity and derivative obligations, which could lead to further volatility.

Investors are advised to closely track BlackRock's future moves and ETF flows as key indicators of market direction. The firm's influence in the crypto market makes its actions a significant signal for broader sentiment.