The crypto market is facing heightened anxiety as BlackRock, a leading asset manager, continues to offload significant amounts of Bitcoin and Ethereum. Market observers note that these transactions are linked to ETF outflows rather than direct investment decisions by BlackRock itself.
Expert Comments On BlackRock’s Bitcoin Movement
A well-known crypto analyst, known as The Wolf of All Streets, addressed the growing concern on social media, emphasizing that the asset manager is not trading Bitcoin for its own portfolio. Instead, the sales correspond to customer redemptions from BlackRock’s exchange-traded funds (ETFs). According to him, market participants should not be alarmed, as these sales are a routine part of ETF operations.
Blockchain analytics from Arkham Intelligence confirm that BlackRock transferred 5,100 BTC—worth approximately $441 million—to Coinbase Prime. Additionally, the firm moved 30,280 ETH, valued at around $71.85 million, to the same exchange. These transactions occurred in multiple batches, with the Bitcoin transfers executed in 17 separate transactions starting at 11:15 UTC.
Lots of panic.
No reason.
Once again, Blackrock is not buying and selling Bitcoin for Blackrock.
This is for sales of ETFs. For customers.
Of course they have to sell BTC today for yesterday’s outflows.
Price down yesterday means selling underlying today. https://t.co/eGaYpqoZ0z
— The Wolf Of All Streets (@scottmelker) February 27, 2025
Despite these sizable liquidations, the company retains a substantial digital asset reserve. On-chain data indicates that the asset manager currently holds 583,019 BTC, equivalent to roughly $50.26 billion, along with 1.328 million ETH, valued at $3.11 billion.
Market Reactions & Broader Sell-Off
The ongoing sell-off has coincided with a decline in market sentiment, as reflected in the Crypto Fear and Greed Index, which has dropped to 10, its lowest level since 2022. Several factors have contributed to the negative sentiment, including uncertainty surrounding Solana-based meme coins and recent economic policy statements by former U.S. President Donald Trump.
BlackRock is not the only institution witnessing outflows. Other major asset managers have also been selling off crypto holdings in response to ETF redemptions. The US spot Bitcoin ETFs collectively recorded $754 million in outflows within the past 24 hours, with BlackRock’s iShares Bitcoin Trust (IBIT) leading the way, selling $418 million in BTC.
Similarly, Fidelity’s Wise Origin Bitcoin Fund (FBTC) and Ark 21Shares Bitcoin ETF (ARKB) recorded withdrawals of $145.7 million and $60.46 million, respectively. Ethereum-focused ETFs, including BlackRock’s iShares Ethereum Trust, also saw substantial redemptions, leading to asset sales worth nearly $70 million. Fidelity, Grayscale, and Bitwise collectively recorded an additional $24.5 million in outflows.
Also Read: Bearish Trends Push Bitcoin Out of Top Ten Global Assets by Market Cap
