BlackRock Transfers 3,296 BTC ($254M) to Coinbase

BlackRock, the world's largest asset manager with $10 trillion in assets, has transferred 3296 Bitcoin ($BTC), worth approximately $254 million, to Coinbase.

BlackRock, the world’s largest asset manager, has transferred 3,296 Bitcoin ($BTC) to Coinbase. The move was first reported by Lookonchain and has stirred the cryptocurrency market.

The asset manager known for its vast holdings across markets appears to be transferring some of its assets in response to redemption pressure.

Recently, there has been a rising trend of outflows from BlackRock’s iShares Bitcoin Trust ETF, a spot Bitcoin exchange-traded fund.

These outflows, in essence, are investors pulling out their money from the ETF, ultimately leading to a sale of BTC by the asset manager to meet these redemptions.

However, even after the transaction, BlackRock still retains a significant stake in Bitcoin. The asset manager currently holds 572,074 BTC and its value is almost $44.9 billion.

But the large volume on Coinbase has caused concern among market players already on edge because of instability in the U.S. macroeconomy.

The transaction is noteworthy as it signals a substantial shift in institutional cryptocurrency holdings.

The large volume of the transaction and the sender’s identity caused a stir in the market right from the onset. Seeing a quarter of a billion dollars worth of Bitcoins coming into Coinbase from a company like BlackRock is highly unusual and distressing.

While other institutional players have made periodic transfers, no such movements from BlackRock have been witnessed since the inception of the ETF in January 2024.

The move comes amid reports of rising outflows from the iShares Bitcoin Trust ETF, which tracks the price of Bitcoin and allows investors to gain exposure to the cryptocurrency without directly buying it.

Recently, there has been an increase in institutional interest in Bitcoin, with several asset managers applying for spot Bitcoin ETFs in the United States.

However, the U.S. Securities and Exchange Commission (SEC) has yet to approve any of these applications.

The lack of approval and the recent outflows from the iShares Bitcoin Trust ETF suggest that there might be some difficulties in managing the inflows and outflows of the Bitcoin Trust ETF efficiently.

Moreover, the iShares Bitcoin Trust ETF has seen an 80% decline in trading volume this year compared to last year, indicating reduced activity and liquidity in the market.

The large volume of the transaction and the sender’s identity caused a stir in the market.

According to Benzinga, the move could be part of a broader strategy by BlackRock to manage its digital assets more efficiently.

In parallel with the BTC movement, BlackRock submitted to the U.S. Securities and Exchange Commission for a new custodian designation for Anchorage Digital.

Anchorage, a federally chartered digital asset trust bank, will handle parts of both IBIT and the $1.8 billion iShares Ethereum Trust ETF (ETHA).

Anchorage is known for providing institutional-grade custody services and is licensed to provide custody of digital assets under federal supervision. It also provides staking, governance, and token trading services.

BlackRock’s recent SEC filings indicate that the firm could maintain multiple accounts at Anchorage to segregate assets held in its ETFs.

This structure is part of the firm’s ‘constant risk management strategy’ and an expansion of its foray into digital assets.

The move is also in response to requirements set by regulatory authorities.

Bitcoin Price Analysis

Bitcoin is currently at $77,090 and has closed 1.78% down from the day’s high.

Analysts are still optimistic as the leading cryptocurrency is trading above the 21-week Exponential Moving Average (EMA), a key indicator that backs the current bull phase.

According to EGRAG CRYPTO, BTC can retain the bullish trend only if it stays above $67K. Failure to hold this level could discredit the current rally.

EGRAG further noted there are three possible scenarios for Bitcoin.

A retracement may bring the price to $97k after touching $109k. During that phase, altcoins are expected to outperform, providing highly rewarding trades to traders.

The next target that has been forecasted is $177K, with a Fibonacci level of 1.618. This projection points to great expectations for altcoins as returns that can reach the 10X to 20X multiple are seen.

A new bull run, fueled by assuredly more liquidity, could catapult BTC to above $250K, catalyzing further outsized gains in altcoins.