TLDR
- BlackRock moved 1,885 BTC ($111M) and 59,606 ETH ($254M) to Coinbase amid ETF outflows.
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Outflows from Bitcoin and Ethereum ETFs totaled $311M, with BlackRock leading.
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Bitcoin and Ethereum prices are down over 8% in the last week, reflecting market corrections.
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ETF outflows are contributing to a bearish sentiment in the crypto market, impacting BTC and ETH prices.
BlackRock, the world’s largest asset manager, has sold a substantial amount of Bitcoin and Ethereum from its exchange-traded funds (ETFs). The firm transferred 1,885 BTC, worth approximately $111.66 million, and 59,606 ETH, valued at $254.43 million, to Coinbase Prime. These transfers are being interpreted as a move to sell the coins, coinciding with an ongoing trend of outflows from BlackRock’s crypto ETFs.
The outflows from the iShares Bitcoin and Ethereum ETFs were recorded on August 20, marking a continuation of a larger trend where investors have been pulling funds from these ETFs. Arkham Intelligence provided data showing the outflows, with BlackRock’s Bitcoin ETF losing $220 million and its Ethereum ETF losing $257.78 million. This trend is not unique to BlackRock, as other ETF issuers, including Ark Invest, Grayscale, and Fidelity, have also experienced outflows, signaling a broader market pullback.
Crypto ETF Outflows Continue for Multiple Days
The trend of ETF outflows has persisted for several days, contributing to a decline in the prices of Bitcoin and Ethereum. BlackRock and other crypto ETF issuers have now recorded multiple consecutive days of outflows.
Bitcoin ETFs have experienced four straight days of outflows starting on August 15, amounting to $970.82 million. Ethereum ETFs have followed a similar pattern, with $925.83 million in outflows over the same period.
As ETF outflows increase, it forces asset managers to liquidate assets to meet redemption requests from investors. In the case of BlackRock, the sale of Bitcoin and Ethereum appears to be part of this process. The large-scale transfer of coins to Coinbase Prime suggests that these funds are being prepared for sale, with the resulting price pressure contributing to a decline in the value of both BTC and ETH.
Impact on Bitcoin and Ethereum Prices
The outflows from BlackRock’s Bitcoin and Ethereum ETFs come amid a broader downturn in the cryptocurrency market. Over the past week, Bitcoin has fallen by more than 8%, with Ethereum also seeing a similar decline.
The market’s correction follows the surge in prices earlier this month, which saw Bitcoin reach a new all-time high of $124,000.
The ongoing ETF outflows are fueling bearish sentiment, which has had a noticeable effect on the prices of these leading cryptocurrencies. The $366 million sale by BlackRock, one of the largest institutional players in the space, adds to concerns that more institutional investors may follow suit and reduce their crypto exposure in the face of market volatility.