BlackRock Buys $589M in Bitcoin and Ethereum as Crypto Market Recovers

BlackRock stepped up its crypto acquisition, buying $589 million in Bitcoin and Ethereum from Coinbase. The transactions coincided with a time the overall crypto market is recovering and institutional trading is on the rise.

BlackRock Crypto Inflows Soar To $589 Million In 3 Days

According to Onchain Lens citing Arkham data, BlackRock has received 4,044 BTC and 80,121 ETH in the last three days from Coinbase which works out to about $589 million.

The $589 million dollar is a combination of $354 million Bitcoin and $235 million Ethereum at their current market values. This is one of the biggest accumulations of any institutional ETF issuer of this month.

The transfers were executed in a few huge batches. In one window, there was a transfer of 300 BTC with several other ETH transfers within a few minutes’ interval. The trend represents a contrast to previous activities when BlackRock transferred millions in BTC and ETH to Coinbase.

This trend is backed by BTC price behavior. At the time of writing, BTC price has risen to around $91,552, following an intraday correction. The chart indicates an obvious turnaround as buyers intervened around the $91,000 mark. This recovery correlates with the overall market strength after significant price swings from earlier this week.

ETF Flows Enhances BlackRock’s Market Lead

The data from SoSoValue contributes to this trend. On November 26, BlackRock IBIT ETF had almost $43 million net inflows, the largest among other U.S. Bitcoin ETFs on that day.

On the contrary, Fidelity’s FBTC experienced more than $30 million in outflow, which implies a demand shift in favor of BlackRock. Grayscale’s GBTC recorded a minor inflow of $5.63 million, whereas there was an inflow of net-neutral in other issuers.

In the same time, Ethereum showed renewed momentum. ETH price was trading at about $3,022 following a slight increase in the last day. The chart displays a steep rise since around midday followed by a smooth consolidation above the $3,040 level before a pullback late afternoon.

BlackRock Records Largest Inflows Among Ethereum ETFs

On November 26, BlackRock ETHA recorded a net inflow of $50.22 million, which is a great margin from other Ethereum ETF issuers. ETHE by Grayscale was flat and Fidelity did not see any noticeable movement with its FETH.

However, Bitwise’s ETH ETF (ETHW) and Grayscale added ETH to its second Ethereum ETF with inflows of almost $4.4 million and over $6 million, respectively. This increase in the demand of ETFs is part of the overall growth of the firm in its digital asset exposure. A recent example is BlackRock’s launch of BUIDL on the BNB Chain.

These trends prove that BlackRock still controls the ETF markets of these major crypto assets. The inflows provide a positive indication that professional investors are taking positions ahead of the potential year-end catalysts.