BlackRock Withdrew 3,948 BTC and 1,737 ETH from Coinbase

BlackRock deposited 1,134 Bitcoin (BTC) and 7,255 Ethereum (ETH) worth approximately $123 million to Coinbase Prime on January 2, 2026. The transaction was confirmed by blockchain analytics platforms Arkham Intelligence and Lookonchain. According to reports.

This move followed a period of declining interest in U.S. spot Bitcoin and Ethereum ETFs. On December 31, 2025, US spot Bitcoin ETFs recorded $348.10 million in net outflows, with BlackRock’s iShares Bitcoin Trust (IBIT) accounting for $99.05 million of that total. Ethereum ETFs saw similar outflows, with BlackRock’s fund losing $21.5 million. According to reports.

The on-chain activity has raised concerns about the firm’s bearish stance on digital assets. Market participants interpret the move as a sign of sustained sell pressure, especially after a string of outflows in late 2025 and early 2026.

Why Did This Happen?

BlackRock’s transfers occurred amid a broader trend of asset offloading that began in late 2025. The firm’s ETF outflows suggest declining investor confidence in the crypto market. BlackRock’s own IBIT fund, which still holds 770,791 BTC worth around $67.4 billion, has seen a significant portion of its assets redeemed by investors. According to reports.

The move also coincided with the expiry of $2.2 billion in crypto options, including positions on Bitcoin, Ethereum, XRP, and Solana. Analysts warn that continued ETF outflows could lead to further downside for Bitcoin, potentially pushing the price below $90,000 and toward $50,000 in extreme scenarios. According to reports.

BlackRock’s silence on its motives has fueled speculation among market participants. While the firm has not commented on its strategy, the timing of the move—right after a major ETF outflow—has drawn attention. The lack of clarity has led to cautious sentiment in the market.

How Did Markets React?

Despite the concerns, Bitcoin and Ethereum prices showed mixed reactions. Bitcoin rose 1.78% in 24 hours, trading around $89,412, while Ethereum climbed 2.25% to approximately $3,048. According to reports.

The market remained on edge as ETF net flows turned negative for eight of the last nine trading days for Bitcoin and five of the last six for Ethereum. This trend indicates ongoing investor wariness and a lack of broad-based demand for crypto assets. According to reports.

However, long-term holders have shown resilience. Glassnode reported that ETF flows showed no renewed demand, but long-term Bitcoin holders stopped selling, suggesting some level of market stability. According to reports.

What Are Analysts Watching Next?

Market analysts are closely watching how the ETF sector performs in 2026. BlackRock’s recent inflows in early January signaled a return of institutional demand. On January 5, 2026, U.S. spot Bitcoin ETFs saw $697 million in net inflows—the largest single-day inflow since October 2025. According to reports.

BlackRock’s IBIT led the inflow with $372 million, followed by Fidelity’s FBTC with $191 million. Ethereum ETFs also posted significant inflows, with spot ETH ETFs adding over $168 million on the same day. According to reports

The synchronized buying indicates that large institutions are rebalancing portfolios rather than chasing speculative momentum. Bitcoin held above the $90,000 level during the session, showing some level of confidence from institutional investors. According to reports

The broader market is also looking at how Venezuela’s $60 billion in Bitcoin holdings could influence price action. If these assets are frozen or held as a strategic reserve, it could support higher Bitcoin prices in Q1 2026. However, uncertainty could still cause short-term volatility. According to reports

Overall, the market is in a period of transition as crypto becomes more embedded in long-term investment strategies. BlackRock has reframed crypto as a core component of the global financial system rather than an experimental asset class. According to reports

Investors are advised to monitor ETF inflows for signs of shifting sentiment and to consider diversifying their exposure to multiple digital assets as the market evolves.