BlackRock Moves $670M in Crypto to Coinbase Prime

BlackRock has transferred over $670 million in Bitcoin and Ethereum to Coinbase Prime, sparking attention across the crypto market. The move, however, appears to be part of routine ETF operations rather than a signal of liquidation.

Key Takeaways

• BlackRock moved 6,918 BTC and 58,327 ETH, worth over $670 million, to Coinbase Prime on Monday.
• The transfers are tied to ETF creation and redemption activities, not direct selling.
• IBIT saw $528 million in outflows last Friday, its largest since launch.
• Total weekly outflows across all US spot Bitcoin ETFs hit $1.5 billion, signaling cautious investor sentiment.

What Happened?

Blockchain data from Arkham Intelligence revealed that BlackRock transferred 6,918 BTC (about $539 million) and 58,327 ETH (around $133 million) to Coinbase Prime. The move triggered speculation about potential sell-offs but appears to be routine ETF-related activity.

The funds were sent from wallets associated with BlackRock’s spot Bitcoin ETF (IBIT) and Ethereum ETF (ETHA). These transfers typically support the creation or redemption of ETF shares, which require moving the underlying assets between custodians.

BlackRock’s Crypto Transfer Explained

This large-scale crypto movement comes amid a week of turbulence in the digital asset market. Bitcoin slipped below $75,000 over the weekend, and US-listed spot Bitcoin ETFs experienced significant outflows.

According to Farside Investors and SoSoValue:

• BlackRock’s IBIT saw $528 million in outflows on Friday.
• All US spot Bitcoin ETFs recorded $1.5 billion in outflows for the week.
• Ethereum ETFs saw $297.51 million in redemptions, with $250 million tied to BlackRock.

Arkham and SoSoValue data confirm that BlackRock’s operational wallets initiated the transfers to Coinbase Prime, which serves institutional clients for custody and trading. This platform is a key part of the ETF infrastructure, allowing authorized participants to process large inflows and outflows efficiently.

Pattern Matches Earlier ETF Activity

This is not the first time BlackRock has shifted large amounts of crypto. On January 13, similar wallet activity moved about $300 million in BTC and ETH, aligning with ETF share adjustments.

The most recent activity shows:

• Around 3,070 BTC, valued at $276 million, and about 52,800 ETH, worth approximately $157 million, also transferred to Coinbase Prime as part of ETF operations.

The timing coincides with market volatility, though analysts stress these movements are not indicative of directional trades. They are more likely related to settlement or hedging done by authorized participants.

What This Means for Investors?

Despite the large withdrawals from ETFs, BlackRock remains one of the largest institutional holders of Bitcoin, with IBIT continuing to dominate in terms of total assets under management.

ETHA, BlackRock’s Ethereum ETF, is also considered one of the leading regulated vehicles for ETH exposure, making its on-chain activity an important signal during volatile market conditions.

CoinLaw’s Takeaway

In my experience covering ETF activity and on-chain movements, these large transfers to Coinbase Prime are operational, not emotional. Yes, the numbers are big. Yes, they happen during volatility. But that’s exactly when ETFs rebalance or redeem shares. I found that the real signal lies in the ETF outflow trends, not the transfers themselves. This is not BlackRock panic-selling crypto. It’s bookkeeping at scale.

If anything, it shows how deeply crypto is now embedded in traditional finance processes. Watching these movements closely helps understand institutional behavior better, but we should not mistake backend ETF operations for market sentiment.

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