Is BlackRock Preparing for a Bitcoin Sell-Off with $204M Transfer?
Recently, volatility in Bitcoin prices has increased investor anxiety, with many watching surveillance events that could impact the market. A key development is BlackRock’s transfer of Bitcoin and Ethereum to Coinbase Prime, which has raised concerns about a potential sell-off.
BlackRock, the principal asset custodian and issuer of the IBIT Bitcoin ETF, recently transferred $204 million worth of assets to Coinbase Prime, which includes 1800 BTC ($160 million) and 18168 ETH ($44 million) ($44 million) . Large transfers to exchanges often indicate potential asset sales, which raises concerns among investors whose Bitcoin price has fallen to $88,300.
However, experts warn that the transfer may not indicate a sell-off. As the custodian, Blackrock manages assets for ETF investors without directly trading its transactions. Analysts believe these transfers are more likely to be part of conventional fund management, such as portfolio rebalancing or investor redemption.
ETF outflows attract attention
BlackRock’s transfer was due to the significant outflow of the Bitcoin ETF market, with investors making $937.9 million in one day. Fidelity’s FBTC ETF saw a $344.7 million outflow, while BlackRock’s IBIT ETF experienced $164.4 million. As BlackRock holds 584,789 BTC (2.6% of total supply), any potential sell-off could have a significant impact on the market.
Despite concerns, BlackRock remains a strong supporter of Bitcoin. CEO Larry Fink predicts that if sovereign wealth funds invest in it, Bitcoin will reach $700,000. Despite market uncertainty, there are no clear signs that BlackRock is selling its Bitcoin. Recent transfers are in line with the company’s regular fund management, rather than exiting the cryptocurrency market.
