BlackRock Moves $441M in Bitcoin to Coinbase
BlackRock's Significant Bitcoin Transfer to Coinbase
BlackRock recently moved 5,100 Bitcoin (approximately $441 million) and 30,000 Ether (around $71 million) to Coinbase Prime. This large-scale transfer, tracked by Arkham Intelligence, follows a similar move on Tuesday involving $160 million in Bitcoin and $44 million in Ethereum.
Key Takeaways:
- Massive Transfer: BlackRock transferred a significant amount of Bitcoin and Ether to Coinbase.
- IBIT Outflows: The iShares Bitcoin Trust (IBIT) saw $741 million in outflows this week, fueled by Bitcoin price volatility.
- Market Volatility: The transfer occurs amidst a period of Bitcoin price fluctuation and concerns surrounding Bitcoin ETFs.
This latest activity comes as BlackRock's flagship Bitcoin ETF, IBIT, experiences three consecutive days of negative performance. According to Farside Investors data, IBIT has seen significant net outflows this week, totaling approximately $741 million. This follows a single-day outflow of over $1 billion on Tuesday in US-listed spot Bitcoin ETFs, with IBIT contributing $164 million to that figure.
The timing of these transfers, coupled with the recent Bitcoin ETF sell-off and IBIT's negative performance, raises concerns about potential further liquidations. Bitcoin’s price briefly dipped below $83,000 on Tuesday before recovering slightly above $86,000.
Concerns around arbitrage strategies employed by some hedge funds—holding long positions in IBIT while shorting CME futures—have also been voiced. A narrowing basis spread during a Bitcoin price decline could trigger these funds to liquidate IBIT holdings, potentially further impacting the price.
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