BlackRock has liquidated $561 million in Bitcoin while acquiring $69 million worth of Ethereum, signaling a strategic institutional pivot amid shifting crypto market dynamics.
BlackRock Reshuffles Crypto Holdings
The world’s largest asset manager, BlackRock, has made a significant strategic adjustment to its cryptocurrency portfolio, offloading a substantial portion of its Bitcoin holdings while acquiring Ethereum. The move, tracked through on-chain data over the past few days, signals a decisive shift in institutional sentiment within the digital asset market.
According to blockchain analytics platform Onchain Lens, a total of 5,362 BTC, valued at approximately $560.9 million, was transferred from wallets associated with BlackRock to Coinbase Prime accounts since the start of the week.
The transactions occurred in multiple tranches, primarily in blocks of 300 BTC, indicating an orchestrated liquidation effort via the institutional-grade platform commonly used for custody, rebalancing, and strategic exits.
Outflows Reflect Broader Market Caution
The substantial Bitcoin movements closely mirrored outflows from BlackRock’s iShares Bitcoin Trust. On Monday, the fund recorded $130.4 million in redemptions, followed by a considerably larger $430.8 million outflow on Tuesday. Combined, the two-day total reached $561 million, aligning with the volume of Bitcoin sold through Coinbase Prime.
This activity took place as U.S. spot Bitcoin ETFs faced a wave of investor withdrawals, ending a streak of ten consecutive days of net inflows. Since last Thursday, the sector has seen cumulative outflows of $1.23 billion, a trend attributed to profit-taking and cautious repositioning after Bitcoin hit a record high of approximately $112,000 in May before retracing to around $103,000.
Ethereum Sees Rising Demand Amid Portfolio Rotation
While scaling back its Bitcoin exposure, BlackRock simultaneously ramped up its Ethereum purchases. Data shows the firm withdrew 27,241 ETH, worth $69.25 million, from Coinbase during the same period, a clear indicator of shifting institutional interest toward the second-largest cryptocurrency by market cap.
This portfolio rotation coincided with a sharp increase in Ethereum network activity. On-chain data confirmed a 15% rise in Ethereum transactions over the past 24 hours, surpassing 1.2 million by 2:00 PM EST on June 3, 2025. The ETH/BTC trading pair also advanced 2.1% to 0.055, reflecting growing relative strength for Ethereum as Bitcoin's momentum eased.
Market Impact and Investor Positioning
BlackRock’s aggressive portfolio adjustment has not gone unnoticed across financial markets. In the equities space, shares of Coinbase (COIN), a primary custodian and trading partner for institutional crypto flows, climbed 1.5% to $225.30 by mid-morning trading in New York.
In the broader crypto market, the reallocation has encouraged traders to position for further ETH gains against both BTC and USD. Market participants are reportedly eyeing key resistance levels for Ethereum, capitalizing on the current capital rotation trend driven by institutional flows.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
