Is BlackRock Selling Bitcoin (BTC)?

Pooja Khardia
Updated
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BlackRock Adds Bitcoin ETF to Model Portfolio, Here’s All

Highlights

  • BlackRock transferred 1,800 BTC to Coinbase Prime, sparking fears of a market sell-off.
  • Analysts claim BlackRock can't sell or buy any assets; they just hold them for ETF investors.
  • The Bitcoin price struggle continues, resulting in an 8% drop amid high ETF outflows over the week.

The recent Bitcoin (BTC) price struggles have led to people carefully monitoring every event around the market, which could affect its performance. Of these, BlackRock selling news is gaining the most attention, as reports suggest that it has transferred millions of assets to Coinbase Prime. Investors fear further market crashes, so what’s happening? Let’s discuss.

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BlackRock Bitcoin Transfer Gives Chills to Investors

BlackRock is a renowned asset custodian and issuer of the IBIT ETF. As a custodian, it holds assets on behalf of investors and often conducts transactions for various purposes. However, its recent transfer of 1,800 BTC ($160M) to Coinbase Prime puts it in a tough spot, as investors understand it as a possible sell-off.

Along with the BTC transfer, the ETF provider also transferred 18,168 ETH ($44M), bringing the total to $204M.

BlackRock Asset Transfers

Meanwhile, the Bitcoin price crashed to $88.16k, adding extra fears among investors and speculation about selling. This is because a move to the exchange wallet often results in selling. However, that is not the case here.

This is because, as a custodian, this ETF manager cannot directly buy or sell the asset. It actually holds assets on behalf of the ETF investors. More importantly, analysts believe this move does not indicate a sale. Instead, it could be related to portfolio rebalancing, redemptions, or operational adjustments within the fund.

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BlackRock Selling More of ETF Outflows

This asset manager is grabbing investors’ attention with $204M worth of asset transfers on February 25 within a short time. Interestingly, these events happened amid the broader ETF market outflows, where the Bitcoin ETFs saw a single-day exit of $937.9M.

Bitcoin ETF Outflows

Here, the Coinglass report reveals Fidelity ETF (FBTC) witnessed the most significant outflow of the day, at $344.7M, and IBIT came next with $164.4M, which many considered selling.

Considering BlackRock holding of 584.789K BTC (2.6% of the total supply), including the $50 billion worth of token purchases in 2024 alone, investors’ concerns are considerable.

Coinglass report

If they begin selling, the crypto market crash will accelerate severely. However, this is less likely to happen, especially as this asset manager is a pro-crypto supporter. Its CEO, Larry Fink, predicts that BTC price could hit $700,000 if sovereign wealth funds allocate a small percentage of their assets to the cryptocurrency.

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Conclusion: No, They Are Not Selling Bitcoin

Despite speculation and investor concerns, it is clear that this asset manager is not selling BTC. Though the transfers were present, that could be a part of redemptions or rebalancing, as the asset manager has done the same before multiple times.

Additionally, the firm has long held a positive stance on crypto and believed in its continuous growth, even to as high as $700,000, so the selling outcome is less likely. Amid these speculations, the Bitcoin price is still volatile, trading at $88.3k after an 8% drop last week.

Investors should focus on their strategies in this volatile market rather than panicking over wallet transfers.

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Frequently Asked Questions (FAQs)

1. Why is BlackRock not selling Bitcoin?

BlackRock is a Bitcoin custodian and holds BTC for ETF investors, so it cannot buy or sell any token on its own.

2. How have Bitcoin ETF outflows impacted the crypto market?

Amid the high Bitcoin ETF outlaws, the crypto market crashed as investors' sentiments turned bearish.

3. When will Bitcoin price hit $700k?

BlackRock CEO Larry Fink once claimed that the price of Bitcoin could reach $700,000 if sovereign wealth funds allocate a small percentage to this digital asset.
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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Pooja Khardia is a seasoned crypto content writer with 6+ years of experience in writing, including in blockchain, cryptocurrency, DeFi, and digital finance reporting. In her adventure journey, she is currently working with CoinGape Media and leading their Trending Section. Here, she uses her expertise to deliver analytics, market insights, price predictions, and information on what’s trending in the crypto space, aiming to keep the crypto and web3 community updated with market trends and important insights. Known for a user-centric and straightforward writing style, Pooja is passionate about making crypto easy and accessible. Her writing blends market research with storytelling, helping readers stay ahead in a fast-paced industry. When not behind the keyboard, Pooja embraces her creative side through drawing and crafting. Connect with Pooja on LinkedIn or X.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.