TLDR

BlackRock sold $151 million worth of Ethereum, reallocating the funds into Bitcoin.
The company purchased $290 million worth of Bitcoin, making it the largest Bitcoin ETF inflow.
Despite the large institutional shift, both Bitcoin and Ethereum saw price drops on the same day.
BlackRock’s Bitcoin ETF now leads in inflows with over $58 billion in cumulative net inflows.
Ethereum’s price fell by 3.29%, while Bitcoin dropped 2.09%, reflecting market reactions to institutional moves.

BlackRock recently made a significant move in the crypto market by reallocating $151 million from Ethereum (ETH) to Bitcoin (BTC). According to Arkham data, BlackRock shifted the funds by first selling ETH, followed by buying BTC. Despite this large transaction, the prices of both assets fell on the same day, highlighting the market’s sensitivity to institutional flows.

Ethereum Drops 3.29% After BlackRock Sells

BlackRock sold $151.4 million worth of Ethereum from its wallets, based on on-chain data and ETF flow information. The company’s iShares Ethereum Trust (ETHA) recorded an outflow of $151.39 million on the same day. This move has led to speculation that BlackRock is reducing its exposure to Ethereum, favoring Bitcoin as a safer bet in the current market environment.

BLACKROCK IS SELLING $150M ETH

But they bought DOUBLE that of BTC.

BlackRock sold $151.4M $ETH and bought $289.8M of $BTC. pic.twitter.com/qusyjXvCtW

— Arkham (@arkham) September 4, 2025

The sell-off marks a stark contrast to BlackRock’s previous activity. Earlier, the asset manager had bought $300 million worth of Ethereum, signaling its previous bullish outlook. However, the recent outflow from Ethereum ETFs suggests a shift in BlackRock’s strategy and a reevaluation of the asset’s potential.

Ethereum’s price dropped 3.29% following the news of BlackRock’s move. Despite the market fluctuations, Ethereum remains up 77% year-over-year. However, the immediate drop reflects investor caution amid BlackRock’s decision to exit its Ethereum positions.

Bitcoin Inflows Surge with BlackRock’s $290M Investment

In tandem with the Ethereum sale, BlackRock allocated $289.8 million into Bitcoin. The company’s iShares Bitcoin Trust (IBIT) saw the largest inflows, with almost $290 million being invested in the asset. This move underscores BlackRock’s growing commitment to Bitcoin, making it a dominant player in the Bitcoin ETF space.

The influx into Bitcoin ETFs was not exclusive to BlackRock. Fidelity’s FBTC added $9.76 million, and Grayscale’s Bitcoin product captured $28.83 million. However, BlackRock’s $290 million investment in Bitcoin stands out, making it the most significant driver of Bitcoin ETF inflows.

Bitcoin’s price also experienced a decline of 2.09% after the influx of capital. Despite this, Bitcoin remains up more than 90% over the past year. BlackRock’s large commitment signals continued institutional confidence in Bitcoin as a primary crypto asset.

Shift in Institutional Sentiment

The move highlights how institutional investors like BlackRock are reshaping market dynamics. While Bitcoin continues to receive strong backing, Ethereum’s recent outflows indicate a potential shift in sentiment. BlackRock’s $58 billion in Bitcoin ETF inflows contrasts sharply with its $12.97 billion in Ethereum ETF inflows.

Despite Ethereum’s impressive long-term performance, traditional asset managers like BlackRock appear more focused on Bitcoin in the short term. The rebalancing reflects a growing preference for Bitcoin’s liquidity and perceived safety. This development suggests that Bitcoin may dominate the crypto market in the near future unless new catalysts emerge for Ethereum.

The post BlackRock Shifts $151M ETH to Bitcoin with $290M Investment appeared first on CoinCentral.

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Filed under: News - @ September 4, 2025 6:29 pm