BlackRock transferred $506 million in digital assets to Coinbase on October 31. On-chain data showed $384 million in Bitcoin (BTC) and $122 million in Ethereum (ETH) moved to the exchange.
The transfers corresponded directly with outflows recorded in BlackRock spot ETF products the day prior.
Farside Investors’ data showed that BlackRock iShares Bitcoin Trust (IBIT) registered $291 million in outflows on October 30.
Its Ethereum product, ETHA, saw $118 million exit on the same day. The deposits to Coinbase reflected BlackRock need to provide liquidity as investors sold their ETF positions on secondary markets.
The Securities and Exchange Commission’s (SEC) July 29 decision allowed in-kind redemptions on Bitcoin and Ethereum ETF exclusively for authorized participants.
Retail investors must buy and sell ETF shares through traditional exchanges rather than redeeming them directly for underlying crypto assets.
Authorized participants are broker-dealers and trading firms that hold agreements with ETF sponsors.
These entities possess exclusive rights to create and redeem ETF shares in large blocks, known as creation units.
When retail investors sell ETF shares, BlackRock must maintain exchange liquidity to facilitate those transactions.
Bitcoin ETF and Ethereum ETF Overall Flows
The broader spot Bitcoin ETF cohort recorded $488.4 million in outflows on October 30. This followed $470.7 million in outflows on October 29, bringing the two-day total to $959 million.
The selloff more than doubled the $462.6 million captured during a four-day inflow streak from October 23 to October 28.
Spot ETF demand provides critical support for Bitcoin price action. The products can dampen sell-offs by crypto-native investors by maintaining buying pressure that reduces downward momentum.
Meanwhile, Ethereum ETFs saw $184.2 million in outflows on October 30, adding to the $81.4 million that exited on October 29.
The combined two-day outflow of $265.6 million did not eliminate the nearly $380 million added between October 27 and 28.
As of October 30, Ethereum ETFs had captured nearly $800 million in net inflows for the month.
Price Levels Remain Critical Amid Blackrock Deposits
Bitcoin traded at $109,666.81 at press time, up 1.2% on the day. Ethereum rose 1.3% to $3,852.73. Both assets require sustained ETF support to maintain their current price ranges.
In Bitcoin news, a Glassnode report from October 29 noted Bitcoin’s rebound from the $107,000–$118,000 supply cluster mirrored previous post-all-time-high relief rallies.
The market struggled above the short-term holders’ cost basis of approximately $113,000. Failure to reclaim this level raised the risk of retracement toward the Active Investors’ Realized Price of roughly $88,000.
Short-term holders exited at a loss while long-term holders distributed approximately 104,000 BTC per month. The data signaled waning conviction and ongoing supply absorption in the market.
For Ethereum, analyst Michaël van de Poppe posted on October 30 that the asset held “a strong significant support level based on horizontal price levels” while maintaining a position above the 20-week moving average.
The weekly chart showed Ethereum defended the range between $3,400 and $3,800 for four consecutive weeks through late October.
Van de Poppe stated he expected the support to hold. He predicted the asset would “start to dive into green weeks going into November.”
The confluence of horizontal support and the 20-week moving average created a technical floor that absorbed selling pressure through the month.
BlackRock deposits to Coinbase demonstrated the operational mechanics behind ETF redemptions and the importance of exchange liquidity in facilitating investor exits.