BlackRock has transferred $293.3 million worth of Bitcoin and Ethereum to Coinbase today

BlackRock has transferred a total of $293.3 million in BTC and ETH to the Coinbase Prime account today. The capital inflows included approximately $293.49 million in BTC and $79.83 million in ETH. Based on blockchain data, the institution has recorded a series of deposits from its wallet address to the exchange since the beginning of the month. 

It’s still unclear why the transfers are being made, but speculation across the decentralized ecosystem has pointed to rebalancing custodial adjustments and a potential sale. The asset manager has recorded inflows for four consecutive days since the beginning of the month, amid bullish momentum in the cryptocurrency market.

BlackRock transfers over $1 billion to Coinbase Prime within five days

BlackRock made a roughly $185 million transfer to Coinbase and Prime yesterday. The asset manager deposited 1,198 BTC valued at approximately $129.09 million and 15,121 Ether, worth around $56.1 million. Over the past five days, BlackRock has transferred more than $1 billion worth of BTC and Ethereum to Coinbase’s institutional custody platform, drawing attention across the crypto industry.

Based on on-chain data from Arkham Intelligence, the asset manager transferred 3,496 BTC, valued at $383.9 million, and 31,754 ETH, worth roughly $122 million, on October 31. The firm then deposited another $506 million in combined ETH and BTC value on November 1st. The outflows from its iShares ETFs represent more than $1 billion in just five days. 

So far, the iShares Bitcoin Trust (IBIT) and the iShares Ethereum Trust (ETHA) manage roughly $100 billion. The IBIT ETFs’ total assets under management stand at approximately $85 billion, while ETHA holds $14 billion. ETHA Ethereum’s share stands at 3.3% and BTC’s share is currently 4.01%

The transfers are likely part of normal custodial rebalancing processes based on investor sentiments online. The firm intends to manage its large-scale crypto positions across the iShares ETFs.

Coinbase currently holds approximately $17.6 billion of BlackRock’s assets, representing the most significant share among exchanges. The asset manager’s total withdrawals to exchanges since March last year account for $17.95 billion. Circle holds approximately $350 million. The firm has deposited $3.25 billion since March 2024. Falcon X received roughly $100 million, while the rest was deposited on the Coinbase exchange.  

Bitcoin and Ethereum drop 4.5% and 5.5% respectively

Meanwhile, the asset manager has not yet approved a Solana ETF, despite the rising inflows through Grayscale’s GSOL and BSOL on the NYSE. As of now, Solana ETFs hold roughly $513 million in total assets. SOL ETFs attracted $70 million on Wednesday and nearly $220 million over the past month. 

Cryptopolitan recently reported that institutional flows from ETFs and corporate treasuries are gradually replacing retail investors. The report was based on a CryptoQuant analysis, noting that the average cost of Bitcoin wallets stands at $55,900. 

The report noted that small holders with less than 0.1 BTC have dropped since 2023, with most of them making their deposits to Binance. In early 2023, smallholders were depositing roughly 552 BTC per day into Binance. As of now, the figure has dropped to just 92 BTC per day, indicating a shift in holding patterns towards institutional investors. The regulatory landscape in the U.S., particularly ETF approvals, allowed institutions to gain exposure to crypto assets without directly interacting with exchanges. 

Bitcoin recorded a 4.5% drop on the daily chart at the time of publication, dropping below $104,000 for the first time in a while. BTC was trading at approximately $101,226. ETH, on the other hand, recorded a 5.5% drop on the daily chart at the time of publication, trading below $3,390.

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