BlackRock Dumps Ethereum, Buys $366M in Bitcoin

BlackRock shifts $366M to Bitcoin ETFs after selling ETH as BTC gains 0.54% and ETH shows stronger weekly growth.
By Paul
BlackRock shifts Ethereum to Bitcoin as ETFs show major institutional rotation.

Highlights

  • BlackRock sells Ethereum, reallocates $366M into Bitcoin.
  • Data from Arkham and SoSoValue confirm institutional shift from Ethereum exposure to Bitcoin.
  • Bitcoin rises 0.54% to $116,162 as Ethereum shows stronger short-term gains.

BlackRock is moving capital between top digital assets, selling Ethereum while purchasing a significant amount of Bitcoin. The scale of the Bitcoin purchase stood out across the ETF landscape.

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BlackRock’s ETF Flows Signal Clear Institutional Rotation From Ethereum to Bitcoin

Arkham Intelligence data and SoSoValue statistics flows revealed that BlackRock’s iShares Bitcoin Trust (IBIT) recorded net inflows of $366.2 million. At the same time, its iShares Ethereum Trust (ETHA) posted net outflows of $17.39 million.

Fidelity’s FBTC followed with $134.71 million in inflows, while Bitwise’s BITB attracted $40.43 million. Other funds recorded modest additions. By comparison, BlackRock’s Ethereum vehicle was the only major product posting heavy withdrawals. This move is similar to a previous transaction where BlackRock sold ETH and bought BTC. This indicates a shift in institutional exposure from ETH to BTC.

The flows were confirmed by the on-chain mapping tool of Arkham, which revealed how BlackRock wallets scaling down ETH positions and scaling up in Bitcoin holdings. This demonstrates that Bitcoin remains the most desired reserve asset amongst institutions.

The flow highlights the changes in exposure by asset managers to the leading cryptocurrency. The IBIT net inflows chart indexed everyday showed a consistent interest in Bitcoin.

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Institutional Flows Cause Diverging Patterns in Bitcoin and Ethereum Prices

This development also shows BlackRock as a major market mover. The largest investment manager has had a consistent impact on the institutional sentiment with its allocations. BlackRock continues to show a cautious but clear preference for the leading cryptocurrency by cutting Ethereum exposure and scaling Bitcoin purchases.

The flows from BlackRock BTC and ETH ETFs also match broader crypto market dynamics. Market performance on September 12 reflected these ETF flows. The value of Bitcoin traded at $116,162, up 0.54% in 24 hours. The weekly price performance shows gains of up to 4.95% and its year-to-date figure has been up at 24.41%. In the last one year, Bitcoin has risen by over 102%, which strengthens the effectiveness of this asset as an inflation hedge.

Bitcoin Price Climbs to $116K Amid BlackRock ETF Inflows
Bitcoin gained 0.54% to $116K as BlackRock’s BTC ETF inflows boosted institutional demand.

ETH price, on the other hand. showed better returns in the short term. The price of ETH increased by 4.01% to trade at $4,639.5 over the last day. The best growth was 8.05% weekly and six months performance was 139.71%. Ethereum gained almost 98.5 percent over the last 12 months yet it remains below Bitcoin in the institutional flows.

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Paul
Paul Adedoyin is a crypto journalist with 4+ years experience who provides timely news, in-depth research, and insightful content to inform and empower his audience. His works have been featured on sites such as CryptoMode, CryptoNewsFlash among others. He holds a degree in Geophysics from OAU, Nigeria. When he's not writing, he loves watching soccer and reading educative journals. He can be reached via [email protected]
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