Fact-Check: Is BlackRock Really "Dumping" Millions in BTC and ETH?
The claim in this viral X post (and similar ones circulating today) is partially true but sensationalized.
BlackRock isn't "dumping" in the sense of panic-selling its entire crypto portfolio to exit the market.
Instead, it's handling net outflows from its spot Bitcoin (IBIT) and Ethereum (ETHA) ETFs, which requires selling underlying BTC and ETH to redeem shares for investors pulling out.
This is standard ETF mechanics during market volatility—not a sign BlackRock is abandoning crypto. Let's break it down with the latest data.
Key Facts on BlackRock's Recent Moves
Outflows, Not Active Dumping: For the week ending October 17, 2025, BlackRock's BTC and ETH ETFs saw a combined $524 million in net outflows ($279M from IBIT and $245M from ETHA). This led to on-chain sales, including transfers to exchanges like Coinbase Prime for liquidation. Similar patterns occurred in August (e.g., $111M BTC and $254M ETH sold amid $311M total ETF outflows).
Strategic Shifts, Not Total Exit: BlackRock has been reallocating toward ETH in recent months. Q2 2025 filings showed $2.3B into ETH ETFs vs. $1.8B for BTC. On October 17 alone, they sold ~272 BTC ($28M) but bought back ~12K ETH ($45M), signaling confidence in ETH's utility (e.g., staking yields of 2-4% vs. BTC's 0%). ETH has outperformed BTC in capital inflows for two straight months.
Scale in Context: These sales (~$500M weekly) are a drop in the bucket for BlackRock's holdings: ~741K BTC ($84B) and ~3M ETH ($11B) as of early October. No evidence of broader liquidation—rumors of "$2B BTC dumps" or "everything sold" stem from exaggerated X posts tying it to events like the Fed's rate cut or a fictional "Trump-China deal.
Market Impact: These moves contributed to short-term dips (BTC down ~3% to $110.5K post-Fed speech on Oct 29; ETH at $3,879). But crypto rebounded quickly—BTC hit $115K on Oct 27 amid $446M ETF inflows. Total BTC ETF outflows were $1.23B that week, but 2025 inflows still outpace 2024
