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- BlackRock transferred over $660 million worth of Bitcoin and Ethereum to Coinbase Prime, stirring warnings that it might sell it off.
- U.S. Bitcoin and Ethereum ETFs saw over $2 billion in outflows as institutional investors took profits during the market downturn.
Major blockchain movements linked to BlackRock have raised concerns about a potential liquidation event. On August 5, wallets linked to the firm transferred 2,544 Bitcoin and 101,975 Ethereum, worth a total of around $292 million and $372 million, respectively, to Coinbase Prime.
These transfers followed strong redemptions in U.S.-listed crypto exchange-traded funds (ETFs), stoking claims BlackRock might be looking to offload assets.
BlackRock (ETHA) deposited 101,975 $ETH($372M) and 2,544 $BTC($292M) into #CoinbasePrime 3 hours ago.https://t.co/qmuDIrPHc6 pic.twitter.com/BTThuI4mot
— Lookonchain (@lookonchain) August 5, 2025
Despite the firm denying any sales, transferring the digital assets out of cold storage and onto an exchange is usually seen as a sign of an upcoming liquidation. This coincided with a four-day selling spree by U.S. Bitcoin ETFs, which sold $1.5 billion collectively. Ethereum ETFs also followed a similar pattern, with two consecutive days of withdrawals totaling $600 million.
iShares Ethereum Trust dumped 101,975 ETH, its largest one-day redemption after launch. The sale decreased the crypto holdings of the fund by slightly 3% although it kept a large position valued at $10.7 billion. On-chain figures revealed that as of August 4, trading volume offset at $1.92 billion, net Ethereum ETF outflows totaled $465 million, and a resultant 21-day streak of inflows came to its peak.
Ethereum ETFs Reverse Momentum as Price Drops
After posting strong July inflows, Ethereum-focused ETFs are now in retreat. Fidelity’s ETH Trust recorded more than $55 million in redemptions, leaving it with net assets of $2.4 billion. Grayscale Ethereum Mini Trust was next with withdrawals of $28 million, partly balanced by new allocations of $1.1 million. The Ethereum ETF currently has around $20.47 billion in assets under management, or 4.7% of the ETH market cap.
On August 1, there was no activity in the BlackRock ETH fund, but there were significant outflows in other large funds. Grayscale ETHE fell by $47.68 million and Fidelity FETH by $40.30 million. These same funds had been witnessing record demand just weeks ago. U.S. spot Ether ETFs raised $726.6 million in a day, with BlackRock adding $499 million to it and Fidelity adding $113 million on July 16. Net inflows on the next day increased further by $602 million.
The boost in July saw Ethereum rise by up to 67%. At press time, though, ETH has retraced to $3,603, 0.7% down in the day and 5% on the week.
Bitcoin ETF Redemptions Extend to New Lows
The Bitcoin exchange-traded fund is also under pressure. On Monday, BlackRock-backed iShares Bitcoin Trust saw an outflow of $292.5 million, the biggest since June 15. Fidelity FBTC trailed it with a redemption of $40 million, and Grayscale GBTC lost an additional $10 million.
Spot Bitcoin ETFs reported the second-largest single-day loss of $812 million on August 2. This culminated in a 37-day streak of inflows that coincided with BlackRock accumulating institutional funds steadily.
The price of BTC has been reflected in the ETF activity. It declined to about $112,000 on the weekend but has since regained a bit to have now reached about $114,000. The asset declined by 0.39% as of this writing and by 3.47% over the last week.
