BlackRock Sells $151 million ETH, Buys $290 million Bitcoin

BlackRock shifted its crypto exposure by selling $151M in Ethereum and reallocating $290M into Bitcoin. Yet, the price of both assets still dropped.

ETF Flows and Price Action Confirm BlackRock’s Rotation From Ethereum to Bitcoin

Arkham data reported the activity first, showing $151.4 million in ETH leaving BlackRock-linked wallets, followed almost immediately by $289.8 million in Bitcoin purchases. SoSoValue ETF flow information supported the on-chain data. The iShares Ethereum Trust (ETHA) recorded an outflow of $151.39 million. On the same day, iShares Bitcoin Trust (IBIT) had an inflow of $289.84 million.

The fact that on-chain transfers and ETF flows virtually match affirms that BlackRock has been moving Ethereum capital into Bitcoin. Among the Bitcoin ETFs, the BlackRock IBIT led in inflows with almost $290 million. This phenomenon is almost never seen between two data sets.

Furthermore, Fidelity’s FBTC added $9.76 million and Grayscale’s BTC product captured $28.83 million. The total positioned BlackRock as the overwhelming driver of Bitcoin inflows.

Ethereum ETFs showed the opposite trend. ETHA’s $151.39 million outflow dwarfed all other products, with Fidelity’s FETH gaining $65.78 million and Bitwise’s ETHW adding $20.81 million.

The massive exit from the BlackRock Ethereum ETF, despite the occasional flows elsewhere, creates the impression that the leading asset manager is abandoning ETH and moving to BTC. This is a striking contrast to the earlier $300 million Ethereum purchase by BlackRock.

The rebalancing pressure reflected on market prices. According to TradingView data, Bitcoin dropped 2.09% on the day to $109,422, worsening its losses over the week to 1.68%. ETH value fell 3.29% to $4,306 lagging behind Bitcoin and losing the recent gains it has made.

While both assets maintain strong yearly returns. BTC is up more than 90% and ETH up 77% over the past year. The immediate session showed Ethereum shouldering the sharper decline.

Institutional Flows Widen the Gap Between Bitcoin and Ethereum Exposure

The move underscores how institutional flows now influence price behavior almost in real time. The rotation at BlackRock created the biggest single-day ETF redemption in months, combined with some of the strongest Bitcoin commitments of the year. The latest development is a further proof in the shifting investment sentiment by the asset manager. Recently, BlackRock dumped $111 million BTC and $254 million ETH.

The difference between the outflow of ETH and the inflow of BTC is also an indication of caution to altcoins by traditional asset managers. The long-term performance of Ethereum remains awe-inspiring. However, the short-term positioning suggests a change in the way investors focus on the liquidity and the perceived safety of Bitcoin.

Consequently, BlackRock Bitcoin ETF now has over $58 billion in cumulative net inflows. This is a significant amount compared to the $12.97 billion in its Ethereum ETF. This further proves that institutional exposure to both Bitcoin and Ethereum is widening. Bitcoin is likely to dominate the crypto markets in the weeks ahead unless alternative catalysts for Ethereum appear.