Bitcoin News Update: BlackRock Offloads, Grayscale Acquires: Diverging Approaches in Crypto ETFs

BlackRock, which oversees $11 trillion as the globe’s largest asset manager, has moved $430 million worth of

and to Prime. This transfer is associated with ongoing spot ETF redemptions and heightened market swings. Blockchain analytics provider reports that the transaction involved 2,854 Bitcoin (around $314 million) and 29,639 Ethereum (about $115 million), both directly linked to BlackRock’s iShares Bitcoin Trust and iShares Ethereum Trust, . This activity took place during a week marked by substantial outflows from crypto ETFs, with Bitcoin-related redemptions alone reaching nearly $1.23 billion last week.

The timing of this transfer coincides with broader market stress. Bitcoin has been unable to surpass $110,500, lingering near $108,000, while Ethereum continues to trade below the $4,000 mark. These price points have intensified the trend of redemptions, as investors reduce their crypto holdings. Experts point out that these movements are typical of ETF rebalancing: when investors redeem shares, the underlying assets must be delivered to settlement brokers such as Coinbase Prime. Arkham’s data confirms that BlackRock is sending crypto from its wallets to fulfill these redemption requests, as highlighted in the TradingView report.

This approach stands in contrast to the strategies of other major firms. While

seems to be reducing its holdings, Grayscale, another significant ETF provider, has been adding Ethereum and Bitcoin to Coinbase Prime, indicating a different market stance. Blockchain observer Lookonchain noted that BlackRock withdrew 681 Bitcoin and 6,000 Ethereum (valued at $74.72 million and $22.91 million, respectively) from Coinbase Prime, whereas Grayscale deposited 525 Bitcoin and 21,030 Ethereum ($57.22 million and $80.84 million), according to . These transactions point to a shift in capital from Grayscale’s offerings to BlackRock’s ETFs, as shown by net inflows into BlackRock’s Bitcoin Trust (IBIT) and Ethereum Trust (ETHA), compared to outflows from Grayscale’s and .

ETF movement highlights larger institutional trends in a consolidating market. On October 22, BlackRock’s IBIT saw an inflow of 679.88 Bitcoin, while Grayscale’s GBTC experienced an outflow of 522.85 Bitcoin, according to CoinGlass. Since inception, BlackRock’s Bitcoin ETF has accumulated 667,270 Bitcoin, whereas Grayscale has sold 245,430 Bitcoin, reflecting changing investor sentiment. A similar trend is seen in Ethereum ETFs, with ETHA gaining 28,600 Ethereum, while Grayscale’s ETHE and ETH lost 20,690 Ethereum in outflows.

Market watchers are paying close attention to how these developments might affect prices. The selling pressure from ETF redemptions, combined with Bitcoin’s inability to break through major resistance, has led to doubts about short-term rallies. At the same time, Ethereum’s continued trading below $4,000 raises concerns about its potential to draw new investments. The interaction between institutional activity and retail investor sentiment could further increase volatility, especially as broader economic factors—such as changes in central bank policies—remain uncertain.

BlackRock’s recent moves also illustrate the deepening connection between digital assets and traditional finance. As a leading manager of major crypto ETFs, BlackRock has become a key indicator of institutional involvement. However, the recent wave of outflows underscores the difficulty of managing liquidity needs amid volatile markets, especially in an industry still facing regulatory ambiguity and price swings.

As the crypto sector weathers this period of instability, the relationship between BlackRock’s ETF actions and overall capital flows will be a central issue. With industry giants like Grayscale and BlackRock taking different approaches, the next few weeks may reveal whether the market is heading toward stabilization or entering a more extended downturn.