BlackRock’s Bitcoin Moves Spark Market Fears—But No Sell-Off

February 26, 2025 BACK TO NEWS

BlackRock’s Bitcoin and Ethereum transfers raise concerns, but analysts see no signs of a sell-off - IcoHolder.

Recent Bitcoin (BTC) price struggles have heightened investor anxiety, with many closely monitoring events that could impact the market. One of the most discussed developments is BlackRock’s recent transfer of Bitcoin and Ethereum to Coinbase Prime, fueling fears of a potential sell-off. However, despite the speculation, analysts suggest that these transfers do not indicate a mass liquidation.

BlackRock’s Transfers Raise Questions

BlackRock, a major asset custodian and issuer of the IBIT Bitcoin ETF, recently moved 1,800 BTC ($160 million) and 18,168 ETH ($44 million) to Coinbase Prime, bringing the total transfer to $204 million. Since large transfers to exchanges often precede asset sales, the move has unsettled investors already wary of Bitcoin’s price drop to $88,300.

However, industry experts caution against assuming a sell-off. As a custodian, BlackRock holds assets on behalf of ETF investors and does not trade them directly. Analysts believe these transactions are more likely related to routine fund management activities, such as portfolio rebalancing or investor redemptions.

ETF Outflows Fuel Concerns

BlackRock’s transfers occurred as the Bitcoin ETF market saw significant outflows, with investors pulling $937.9 million in a single day. Fidelity’s FBTC ETF led with $344.7 million in outflows, while BlackRock’s IBIT ETF followed with $164.4 million. Given BlackRock’s substantial Bitcoin holdings—584,789 BTC, or 2.6% of the total supply—any perceived sell-off could have dramatic market consequences.

Despite the fears, BlackRock remains a strong proponent of Bitcoin. CEO Larry Fink has previously predicted that Bitcoin’s price could surge to $700,000 if sovereign wealth funds allocate even a small percentage of their assets to the cryptocurrency.

No Signs of a BlackRock Sell-Off

While market uncertainty persists, there is no concrete evidence that BlackRock is offloading Bitcoin. The recent transfers align with the firm’s history of fund management operations, not a strategic exit from the crypto market.

With Bitcoin’s price volatility continuing, investors are advised to focus on long-term strategies rather than reacting to every major wallet transfer. As BlackRock maintains its bullish stance on crypto, fears of a market crash driven by its actions appear to be largely unfounded.