- BlackRock transferred 101,975 ETH worth $372 million to Coinbase Prime, prompting speculation about possible ETF reshuffling.
- The Ethereum price declined by 1.81% following the transfer, reflecting broader market concerns about institutional outflows.
- The use of Coinbase Prime signals that the transfer likely relates to ETF asset adjustments rather than a direct market sale.
Asset manager BlackRock has transferred 101,975 Ethereum (ETH), valued at approximately $372 million, into Coinbase Prime. The large-scale movement was first reported by analytics platform Lookonchain. The transaction has raised questions across the crypto space, especially as Ethereum faces a drop in value.
Following the transfer, Ethereum saw a 1.81% decline in price, falling from $3,734.98 to $3,570.33. This comes amid broader ETF outflows, driven by institutional investors locking in profits. The dip in Ethereum’s price is being closely linked to the recent movements of high-volume players like BlackRock.
Coinbase Prime’s role points to ETF-related operations
Coinbase Prime is often used for custody and settlement of digital assets, particularly those tied to exchange-traded funds. Given this context, analysts believe BlackRock’s latest transaction may be related to structural adjustments to its Ethereum ETF offering. The platform’s use suggests potential backing or reshuffling of fund assets rather than immediate liquidation.
Before this development, BlackRock had steadily increased its Ethereum holdings. By the end of July, the firm had accumulated roughly $11.4 billion worth of ETH over a few weeks. Despite recent price fluctuations, BlackRock’s activity indicated a long-term position in Ethereum.
Additional Bitcoin transfer adds to institutional activity
In addition to Ethereum, BlackRock also moved 2,544 Bitcoin (BTC) to Coinbase Prime. The BTC transfer, valued at $292 million, occurred around the same time. These parallel transactions further underline a coordinated adjustment possibly linked to its ETF portfolio management.
The transfer comes shortly after the SEC approved in-kind redemptions for both Bitcoin and Ethereum ETFs. Market watchers believe the shift may align with new regulatory provisions, allowing BlackRock to optimize its ETF settlement mechanisms. The development follows rising speculation about the firm’s potential expansion into other crypto ETFs.
