Investment manager BlackRock moved more than $430 million in digital assets to Coinbase Prime this week as investors withdrew funds from cryptocurrency exchange-traded products.
The transactions involved approximately 3,070 bitcoin and 52,800 ether from BlackRock’s iShares Bitcoin Trust and iShares Ethereum Trust, blockchain records show.
Analysts describe the movements as routine ETF operations rather than active selling by BlackRock. Coinbase Prime functions as the settlement platform where authorized participants process share redemptions for US-listed spot crypto ETFs.
The asset transfers coincided with substantial investor withdrawals. US spot bitcoin ETFs recorded roughly $709 million in outflows while ethereum products saw $298 million in redemptions during the same timeframe.
BlackRock’s bitcoin ETF posted $356.64 million in outflows on January 21, ranking as the fund’s sixth-largest single-day withdrawal. Across the broader market, bitcoin ETFs experienced approximately $1.33 billion in weekly outflows, the second-highest withdrawal period on record.
Despite recent redemptions, BlackRock’s iShares Bitcoin Trust maintains its position as the largest institutional bitcoin holder, with hundreds of thousands of BTC under management.
Bitcoin traded near $87,700 on Monday while Ethereum hovered around $3,000.
Social media posts mischaracterized the activity as BlackRock dumping holdings. Industry analysts say the distinction matters: investors withdrew capital from the ETFs, requiring BlackRock to transfer underlying assets to process those redemptions.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
