Ethereum News Today: BlackRock's $616M Crypto Deposit Fuels Sell-Off Fears as Market Panics

BlackRock, the world's largest asset manager, has deposited $616 million in Bitcoin and $200 million in Ethereum into Coinbase's institutional custody platform, Coinbase Prime, sparking renewed debate about market stability and institutional strategy in the volatile crypto sector. The transfers, which include 6,735 Bitcoin and 64,706 Ethereum, align with the firm's routine custodial adjustments tied to its Bitcoin and Ethereum spot ETF operations. However, analysts and traders have interpreted the moves as potential signals of a large-scale sell-off, exacerbating existing fears of a deepening bear market.

The deposits follow a pattern of significant institutional activity by BlackRock in recent weeks. On November 17, 2025, the firm transferred 4,880 Bitcoin ($467 million) and 54,730 Ethereum ($176 million) to Coinbase Prime within an hour, according to on-chain analytics firm Lookonchain. These transfers occurred amid broader market weakness, with Bitcoin trading below $93,000 and Ethereum near $3,140, both retesting critical support levels. Market observers have speculated that the timing and scale of the transactions suggest BlackRock is preparing to offload its holdings, though the firm has not publicly confirmed this motive.

The Ethereum deposit has drawn particular scrutiny. The $198 million ETH transfer raised concerns about a potential oversupply in the market, despite the asset holding above key support levels. Regulators have also taken note: The Office of the Comptroller of the Currency recently permitted banks to hold Ethereum for gas fees, requiring separate accounts for such transactions. This regulatory development could influence how institutions like BlackRock manage their crypto assets, though it does not clarify the intent behind their recent moves.

The market reaction has been swift. Bitcoin fell to around $94,000 shortly after the transfers, marking a weekly decline of over 10%. Ethereum also weakened, losing momentum after a brief recovery. CoinShares data shows that Bitcoin ETFs experienced $1.38 billion in outflows last week, while Ethereum ETFs lost $689 million-three consecutive weeks of withdrawals. The Bitcoin Fear & Greed Index, a sentiment indicator, plummeted to 14, reflecting extreme panic among investors.

BlackRock's actions have also highlighted broader trends in institutional crypto engagement. The firm's Bitcoin ETF (IBIT) and Ethereum ETF (ETH ETF) are among the most actively traded products in the space, leveraging Coinbase's infrastructure to simplify custody and trading for institutional clients. However, the recent outflows and large deposits have cast doubt on the sustainability of retail and institutional confidence. For example, the XRP ETF, launched around the same time, saw a $15.5 million outflow in its first week, underscoring a broader reluctance among investors to commit to digital assets.

The implications for the crypto market remain uncertain. With liquidity thinning and leverage unwinding across exchanges, any major sell-off by a top ETF issuer could accelerate declines and deepen investor pessimism. Meanwhile, BlackRock's continued dominance in crypto ETFs-managing nearly half of the $160 billion in global bitcoin ETF assets-means its actions will likely remain a barometer for institutional sentiment.