In a notable twist in the cryptocurrency market, BlackRock made significant deposits at Coinbase Prime on Friday, contributing around 2,563 Bitcoin valued at approximately $173 million and 49,852 Ethereum worth roughly $97 million. These moves came in the wake of an unprecedented wave of redemptions from its leading crypto funds, as reported by Arkham Intelligence.
Recent data from Farside Investors revealed that BlackRock’s spot Bitcoin ETF, known as IBIT, has experienced substantial net outflows totaling about $368 million over a mere three-day period. This accounted for a significant portion of the total $404 million withdrawn from all 11 U.S. Bitcoin ETFs. Additionally, BlackRock’s Ethereum fund, ETHA, faced a similar fate, shedding $104 million in the same timeframe.
It is important to note that such transfers by BlackRock typically facilitate the creation and redemption of ETF shares, a routine operational maneuver that aligns fund supply with investor demand. However, these large-scale asset movements do not necessarily indicate a shift towards selling.
The backdrop of these transfers coincides with a recent rebound in the cryptocurrency market, attributed in part to discussions held at the White House concerning stablecoin yields with banks and crypto firms. This dialogue falls under broader discussions surrounding a new market structure bill. White House negotiators are advocating for a framework that would permit banks to accept limited stablecoin rewards, indicating the administration’s desire to foster integration between cryptocurrency and traditional financial systems.
Following these developments, Bitcoin saw a surge past $68,000, while Ethereum approached the $2,000 mark. Currently, Bitcoin is trading at around $67,500, reflecting a 1.4% increase in the last 24 hours, according to CoinGecko data.
