Ethereum News Today: BlackRock Moves Crypto Holdings to Coinbase as ETFs Face Outflows

BlackRock, the world's largest asset manager, moved $182 million in Bitcoin and $91 million in Ethereum to Coinbase Prime on Monday, according to blockchain analytics firm Arkham Intelligence. The transfers, involving 2,019 Bitcoin and 29,928 Ethereum, were made to the institutional trading arm of the cryptocurrency exchange. Such on-chain movements often precede significant market activity and have historically triggered larger flows within the same trading day or the next session according to reports.

The move came as BlackRock's Bitcoin and Ethereum exchange-traded funds (ETFs) faced substantial outflows. Bitcoin ETFs lost over $240 million in net redemptions last week, while Ethereum ETFs saw roughly $558 million in outflows without a single day of positive inflows. The broader crypto market also reported a total outflow of $952 million in investment products, ending a four-week streak of inflows. Ethereum and Bitcoin funds accounted for nearly all of the outflows according to reports.

The market reacted with mixed signals as Bitcoin briefly rose above $90,000 before retreating to around $89,100. The total market capitalization of cryptocurrencies increased by 1.5%, reaching approximately $3.1 trillion, as investors remained cautious ahead of key U.S. macroeconomic data releases. Meanwhile, Ethereum continued to trade near $3,000, reflecting broader uncertainty about regulatory clarity and institutional sentiment according to data.

Why the Standoff Happened

BlackRock's recent actions reflect a broader shift in investor sentiment toward digital assets. The firm's ETF outflows highlight a period of caution among institutional and retail investors, particularly in the wake of regulatory delays and market volatility. According to CoinShares, the outflows were largely driven by delays in the U.S. Clarity Act, which has prolonged regulatory uncertainty for crypto products .

The firm's Ethereum ETF, ETHA, saw $221.3 million in outflows on December 16, representing nearly all of the sector's $224.2 million in redemptions. At the same time, BlackRock deposited 47,463 Ethereum to Coinbase Prime, indicating a rebalancing effort rather than a sell-off. This move is part of standard operational procedures to ensure ETFs remain aligned with the spot price of the underlying asset .

Bitcoin ETFs, on the other hand, saw a $457 million inflow on Thursday, the third-largest single-day inflow since October. BlackRock's IBIT led the inflows with $262.11 million, followed by Fidelity's FBTC with $123.61 million. This contrast between Bitcoin and Ethereum highlights the market's preference for assets with clearer regulatory status and stronger institutional backing .

How Markets Reacted

The immediate market reaction to BlackRock's moves was mixed. Bitcoin's price saw a brief rebound above $90,000 but quickly pulled back, remaining volatile ahead of key macroeconomic data releases. Ethereum, however, continued to trade near $3,000, with no clear signs of a breakout.

. The broader crypto market experienced a 1.5% increase in total market capitalization, but most of the gains were driven by Bitcoin's ETF activity rather than organic demand according to reports.

Investor sentiment remained cautious, as highlighted by the performance of alternative cryptocurrencies. XRP and Solana ETFs bucked the trend, recording inflows of $13.21 million and $3.57 million, respectively, for the week ending December 22. These inflows contrasted with the outflows in Bitcoin and Ethereum ETFs, suggesting that some investors are shifting capital to altcoins with distinct narratives or regulatory advantages .

What Analysts Are Watching

Industry analysts are closely monitoring BlackRock's moves for signals about the future of institutional investment in cryptocurrencies. Some argue that the firm's rebalancing of Ethereum ETF holdings and Bitcoin inflows indicate a strategic shift rather than a bearish outlook. "BlackRock's actions reflect a commitment to maintaining fund stability amid market volatility," said one analyst from Farside Investors. "These are routine operational adjustments rather than a sign of long-term retreat from crypto."

Others, however, remain skeptical. The recent outflows from Ethereum ETFs suggest lingering concerns about the asset's short-term prospects, particularly in the absence of a clear catalyst like a major upgrade or regulatory breakthrough. Prediction markets, such as Myriad, show a 32% probability that Ethereum will fall to $2,500 by year-end, compared to a 68% chance that Bitcoin will rise to $100,000 .

The broader market is also watching for signs of regulatory progress in the U.S. and the potential impact on institutional demand. Analysts from Bloomberg Intelligence have noted that ETFs in the early phases of approval often experience volatility, but stability is expected as markets adjust and regulatory frameworks become clearer.