BlackRock has transferred over $120 million worth of Bitcoin and Ethereum to Coinbase, fueling speculation about a sustained sell-off and bearish sentiment in the crypto market.
Key Takeaways
- BlackRock transferred 1,134 BTC and 7,255 ETH worth around $123 million to Coinbase Prime.
- The move follows $348 million in outflows from US spot Bitcoin ETFs on December 31, including $99 million from BlackRock’s IBIT.
- Analysts warn that continued ETF outflows could push Bitcoin below $90,000, possibly toward the $50,000 range.
- The activity coincides with the expiry of $2.2 billion in crypto options, adding to the volatility.
What Happened?
On January 2, blockchain data revealed that BlackRock sent 1,134 Bitcoin (valued at approximately $101 million) and 7,255 Ethereum (worth $22 million) to Coinbase Prime, the institutional arm of the major crypto exchange. This was confirmed by Arkham Intelligence and Lookonchain, which tracked the transactions on-chain.
The transfers appear to be part of a broader trend of asset offloading that began in late 2025 and have raised questions about BlackRock’s current stance on digital assets.
BREAKING: 🇺🇸 Blackrock just moved $101.4 million worth of Bitcoin and $22.1 million worth of ETH to Coinbase. pic.twitter.com/Px4WnJqik1
— Ash Crypto (@AshCrypto) January 2, 2026
ETF Outflows Hit Hard
The transaction occurred just after a wave of outflows rocked the crypto ETF market at the end of 2025. According to data from Farside Investors and SoSoValue:
- US spot Bitcoin ETFs recorded $348.10 million in net outflows on December 31.
- BlackRock’s own IBIT fund accounted for $99.05 million of that figure.
- Ethereum ETFs saw a combined $72.06 million in outflows, with BlackRock’s fund losing $21.5 million.
These persistent outflows mark a stark contrast to BlackRock’s previous dominance. Its IBIT fund still leads the Bitcoin ETF market with 770,791 BTC, valued at around $67.4 billion, but its grip may be slipping.
ETF netflows have been negative for eight of the last nine trading days for BTC and five of the last six for ETH, signaling ongoing investor wariness.
Market on Edge Amid Crypto Options Expiry
BlackRock’s transfers coincided with the expiry of $2.2 billion in crypto options, including positions on Bitcoin, Ethereum, XRP, and Solana. The “max pain” point for BTC was noted at $88,000, adding further downside pressure.
CryptoQuant analysts warned that if outflows from funds like BlackRock’s continue, Bitcoin could fall below the $90,000 mark, possibly cascading toward $50,000, which could trigger broader market panic.
On the bright side, long-term holders appear to be holding firm. Glassnode reported that ETF flows show no renewed demand, but also noted that long-term Bitcoin holders have stopped selling, hinting at some resilience in the market.
Price Action Remains Mixed
Despite the gloomy sentiment, both Bitcoin and Ethereum showed mild gains:
- Bitcoin rose 1.78% in 24 hours, trading around $89,412.
- Ethereum climbed 2.25% to approximately $3,048.
- Ethereum also posted a 7.12% increase in trading volume, suggesting heightened investor interest.
However, market observers remain cautious as BlackRock’s silence on its motives continues to fuel speculation.
CoinLaw’s Takeaway
In my experience watching institutional movements, BlackRock’s crypto decisions are not made lightly. This latest transfer isn’t just a routine portfolio shuffle, it’s a loud signal to the market. When the world’s largest asset manager moves over $120 million in crypto right after a massive ETF outflow and during a $2.2 billion options expiry, you don’t ignore that. I find the timing especially telling. Whether this is a warning shot or a strategic realignment, one thing’s clear: this move will ripple across the entire crypto ecosystem. Stay alert.
