BlackRock Moves BTC & ETH to Coinbase Amid ETF Outflows
BlackRock Transfers Bitcoin and Ethereum to Coinbase Amid ETF Outflows
BlackRock, the world's largest asset manager, appears to be reducing its Bitcoin and Ethereum holdings within its crypto ETFs. This follows substantial outflows recorded on August 4, coinciding with a broader crypto market correction led by BTC and ETH.
Details of the Transfers
Arkham Intelligence data indicates that BlackRock moved 2,544 BTC and 101,975 ETH to Coinbase Prime. Such transfers to exchanges often suggest a potential sale, especially when asset managers need to redeem shares for their Bitcoin and Ethereum ETFs.
ETF Outflow Numbers
SosSo Value data reveals that BlackRock's IBIT recorded a net outflow of $292.21 million on August 4. Simultaneously, its Ethereum ETF, ETHA, experienced a net outflow of $374.97 million.
Broader Market Trends
These outflows were part of a larger trend, with Bitcoin funds collectively seeing a net outflow of $333 million and Ethereum funds hitting a record $465 million in net outflows. This marks the most significant outflow since the introduction of these crypto ETFs last year.
Typically, funds respond to outflows by selling the underlying assets. Fidelity, which also saw a $55.11 million outflow from its Ethereum ETF, similarly moved ETH to Coinbase, according to Arkham data.
In-Kind Redemptions: A Silver Lining?
The SEC's approval of in-kind creation and redemptions for crypto ETFs offers a potential alternative. This allows asset managers to swap shares for the underlying assets directly, rather than liquidating their holdings for cash redemptions.
Impact on Crypto Prices
Bitcoin and Ethereum prices have seen declines alongside the broader crypto market amid these ETF outflows. Bitcoin fell to as low as $112,700, while Ethereum dropped to around $3,556.
While there was a brief market bounce following reports of a rate-cut-friendly Fed Governor appointment, the ETF outflows have largely offset these gains.
Profit-Taking Wave
These ETF outflows reflect a wave of profit-taking in the crypto market. Investors are securing gains after Bitcoin's surge to a new all-time high of $123,000 last month and Ethereum's rise to a six-month high of approximately $3,900.