BlackRock has transferred $214 million worth of Bitcoin and Ethereum to Coinbase Prime, indicating that the company is proactively managing liquidation as demand for crypto ETFs weakens in the US.
This year-end trading chain coincided with outflows from the IBIT and ETHA funds, suggesting BlackRock not only "held" but also coordinated on-chain assets to meet the demand for fund unit buybacks.
- BlackRock transferred $214 million worth of BTC and ETH to Coinbase Prime in year-end transactions.
- Outflows from IBIT and ETHA are increasing, reflecting cooling demand for crypto ETFs.
- Strategy (formerly MicroStrategy) bought an additional 1,229 BTC, going against the trend of Capital withdrawal from ETFs.
BlackRock transferred $214 million worth of BTC and ETH to Coinbase Prime to increase liquidation.
The move to transfer $214 million worth of Bitcoin and Ethereum to Coinbase Prime suggests BlackRock is preparing liquidation to handle the wave of investors withdrawing Capital from crypto ETFs.
According to Arkham, BlackRock executed a series of transactions that listed BTC and ETH on Coinbase Prime. You can XEM the wallet details and transfer flow on Arkham's BlackRock tracking page .
These transfers occur against a backdrop of declining investor interest in crypto ETFs. When ETFs experience Capital, the managing institution/fund needs readily available assets or cash to meet the buyback process, so the "coordination to exchange" activity may reflect liquidation management rather than simply long-term holding.
on-chain only shows the movement of assets and doesn't definitively confirm that BlackRock sold immediately. However, moving assets to Coinbase Prime is often interpreted by the market as preparation for trading or balancing positions to support ETF operations.
Outflows from the Bitcoin ETF IBIT have increased since December 18th.
IBIT has seen a continuous trend of Capital outflows since December 18th, with $7.9 million leaving the fund on December 29th alone.
The data cited shows that since December 18th, BlackRock's Bitcoin ETF (IBIT) has faced a steady outflow. On December 29th alone, $7.9 million was withdrawn from the fund, according to Farside .
On the same day, December 29th, all US spot Bitcoin ETFs recorded net outflows of $19.3 million. This indicates pressure not only on IBIT but also across the entire group of spot Bitcoin ETF products in the US during the end of the year.
A common explanation for year-end Capital outflows is tax-loss harvesting and profit-taking after a volatile final quarter. However, the specific reasons vary depending on the investor group and allocation strategy.
The Ethereum ETF ETHA experienced significant Capital on December 29th.
BlackRock's ETHA saw outflows of $13.3 million on December 29th, nearly double the net outflows from the entire Ethereum ETF market on that day.
Similar pressure emerged in the Ethereum ETF segment. On December 29th, ETHA saw outflows of $13.3 million, according to Farside , a figure described as nearly double the net outflow of the entire Ethereum ETF group for that day.
In this context, BlackRock's enhanced liquidation management by transferring BTC/ ETH may be aimed at mitigating operational risk as buyback demand increases. Notably, both BTC and ETH are being moved to Coinbase Prime, a platform commonly used by institutions for large-scale custody and trading.
Strategy bought 1,229 BTC worth $108.85 million, going against the trend of ETF Capital outflows.
While ETF investors were withdrawing Capital, Strategy bought an additional 1,229 BTC worth $108.85 million, demonstrating a long-term accumulation approach.
According to data from Lookonchain, on the same day BlackRock saw a Capital, Strategy purchased an additional 1,229 BTC , totaling $108.85 million. (See Lookonchain's data post on X.com for details.)
The Medium purchase price stated was $88,568 per Bitcoin, bringing the total holdings to 672,497 BTC. This information underscores the move to "drain liquidation" from the spot market, contrasting with BlackRock's move to list assets on exchanges to address Capital withdrawal needs.
The original article also stated that Strategy currently has unrealized profits of approximately $8.31 billion, representing a 16% increase overall, despite recent volatility.
Two contrasting strategies: BlackRock provides liquidation, Strategy absorbs supply.
BlackRock tends to Vai as a " liquidation provider" to facilitate ETF buybacks, while Strategy Vai as a "supply absorber" when buying and holding Bitcoin long-term.
The contrast lies in the operational objectives. With Crypto ETFs, liquidation management is a priority as outflows increase, so moving BTC/ ETH to exchanges can help meet the needs of investors wanting to convert. Conversely, the buy-and-hold strategy reduces the amount of BTC available in the market.
The way the two sides act can send conflicting signals to investors: one reflects short-term demand and ETF inflows, while the other reflects long-term confidence in Bitcoin as a strategic asset on the balance sheet.
BTC and ETH prices showed little fluctuation despite large capital flows.
Despite large inflows and transactions, BTC hovered around $87,900 and ETH around $2,974, suggesting the market had somewhat "pre-priced in" year-end Capital outflows.
At the time of writing, Bitcoin was trading at $87,900 on CoinMarketCap , up 0.24% in 24 hours. Ethereum was trading at $2,974 on CoinMarketCap , up 0.45%.
The phenomenon of "strong cash flow but little price change" is often XEM as a sign that the market has anticipated year-end Capital withdrawal, so any selling pressure (if present) is well absorbed. As January begins, the focus may shift to early-year sentiment and the return of liquidation after the holiday.
Given the available on-chain data, the logical conclusion is that short-term investors are leaving, while large institutions are rebalancing their positions for the longer term.
Frequently Asked Questions
Why did BlackRock transfer BTC and ETH to Coinbase Prime?
This activity is typically aimed at liquidation management and operations, especially when crypto ETFs experience increased outflows and need to prepare assets or cash to handle buybacks.
What was the amount of cash withdrawn from IBIT on December 29th?
According to data cited by Farside, IBIT experienced outflows of $7.9 million on December 29th.
How much money was withdrawn from ETHA on December 29th?
According to data cited by Farside, ETHA experienced outflows of $13.3 million on December 29th.
How much Bitcoin did Strategy buy and for what value?
Strategy purchased an additional 1,229 BTC , bringing the total value to $108.85 million, according to data cited from Lookonchain.
What were the prices of BTC and ETH at the time mentioned?
BTC at approximately $87,900 and ETH at approximately $2,974, representing increases of 0.24% and 0.45% respectively in the 24 hours at the time of writing.
