BlackRock has repositioned its crypto, liquidating a large portion of Bitcoin (BTC) and increased its investment in Ethereum (ETH). This transfer implies that the biggest investment manager in the world is selling Bitcoin and investing the money in Ethereum. This comes as the crypto market becomes more volatile.
BlackRock Leads Institutional Shift from Bitcoin to Ethereum
According to Lookonchain data, the firm deposited 272.4 BTC, valued at about $28.36 million, into Coinbase Prime five hours ago. Then, it withdrew 12,098 ETH worth roughly $45.47 million from the same platform. Last month, the top asset manager made a similar move only in reverse. BlackRock dumped Ethereum to purchase more BTC.
Data from SoSoValue confirms this rotation. The outflow for the day in the iShares Bitcoin Trust (IBIT) was 29.46 million, out of a total of $536.44 million outflows recorded by other U.S. Bitcoin ETFs.
In contrast, the firm’s iShares Ethereum Trust (ETHA) recorded a net inflow of $46.9 million, the largest among all U.S. Ethereum ETFs that day. The shift appears to reflect a broader investor reallocation away from Bitcoin ETFs and into Ethereum-based products.
Other institutional products mirrored this divergence. Grayscale’s Bitcoin and Ethereum funds both recorded outflows while Fidelity’s funds also saw declines. However, BlackRock was the sole issuer to record ETH inflows. This implies an increasing institutional demand on ETH regardless of the negative trend in the broader crypto market.
Huge Liquidations in the Crypto Market
The crypto market had been in high turbulence in the past 24 hours with total liquidations amounting to over $1 billion. Bitcoin contributed to $369 million of that amount with Ethereum contributing to $262 million, according to data from Coinglass.
Meanwhile, BitMEX founder co-founder Arthur Hayes described the Bitcoin price drop as a buy opportunity following its fall to a four-month low. These forced shutdowns underscore the pressure on leveraged traders as volatilities in top digital assets exploded. However, market sentiment concerning Ethereum sentiment is becoming positive.
According to data provided by CryptoQuant, the ETH open interest is decreasing which is an indication of less speculative exposure and possibilities of stability. ETH price stood at approximately $3,800 following a decrease of about 13% in the last one week.
Fundstrat’s Tom Lee described the ETH setup as “very constructive,” responding to data showing that most leveraged Ethereum positions are now shorts. Usually, this kind of setup has been followed by drastic reversals, with prices soaring up quickly after a short squeeze.
