TL;DR
- Bitcoin Downsize: BlackRock shifted 5,362 BTC (valued at about $561 million) to Coinbase Prime, a move driven by ETF redemption activity and recent Bitcoin price volatility.
- Rethinking Allocation: Amid market uncertainty, the asset manager is strategically rebalancing its portfolio while still holding over 661,000 BTC, worth roughly $70 billion.
- Ethereum Surge: BlackRock boosted its Ethereum exposure by purchasing 27,241 ETH for approximately $69 million, reflecting growing institutional interest as Ethereum ETFs see consecutive positive inflows.
Asset management titan BlackRock has significantly reduced its Bitcoin exposure while making a bold play on Ethereum. Over just a few days, between May 30 and June 2, the firm executed a series of large transactions that have caught the attention of institutional investors and market watchers alike.
BlackRock sold $BTC and bought $ETH.https://t.co/qmuDIrP9my pic.twitter.com/220YCdZNxp
— Lookonchain (@lookonchain) June 3, 2025
Strategic Crypto Rebalance
BlackRock’s recent move involved transferring 5,362 BTC, valued at approximately $561 million, to Coinbase Prime. This decision is believed to be part of a broader strategic rebalance driven by recent ETF redemption activities. The iShares Bitcoin Trust recently experienced notable outflows, with $430.8 million withdrawn on May 30 and an additional $130.4 million on June 2.
Such substantial capital movements have prompted the asset manager to reassess its crypto exposure, especially in light of BTC’s recent volatility. Despite these moves, BlackRock continues to hold a significant Bitcoin position, with over 661,000 BTC still in management, worth around $70 billion.
Bitcoin Outflows and ETF Dynamics
The on-chain activities, recorded in multiple large blocks, indicate that BlackRock’s decision was in part influenced by the ongoing ETF redemptions. Large institutional shifts like these are often a response to market conditions where fund managers look to lock in profits or reduce risk.
Bitcoin’s price saw dramatic fluctuations recently, peaking at an all-time high of $112,000 before pulling back sharply to $103,000, and then hovering near $106,600 at the time of this report. These price swings have added uncertainty and fueled the decision to tune the portfolio amidst today’s trading environment.
Embracing Ethereum’s Momentum
In contrast, while divesting from Bitcoin, BlackRock ramped up its exposure to Ethereum by purchasing 27,241 ETH for roughly $69 million. This bullish bet underscores the momentum behind Ethereum, as evidenced by the rising net inflows into Ethereum ETFs.
On June 2, BlackRock’s iShares Ethereum Trust drew in $48.4 million, while Fidelity’s Ethereum Fund also saw significant inflows. With Ethereum ETFs now marking 11 consecutive days of positive flows and a cumulative inflow of over $3.1 billion, BlackRock’s new positioning is a clear indicator of shifting institutional sentiment.
