BlackRock Sells Millions in BTC Following Weekly Acquisitions – Market ‘Manipulation’ or Standard Rebalancing?

The largest asset management firm globally, BlackRock, is facing scrutiny following blockchain data that indicated the company transferred millions of dollars’ worth of Bitcoin shortly after making some of its most significant ETF acquisitions.

This activity has ignited discussions among market participants, with some labeling it as “manipulation,” while others suggest it is merely standard portfolio rebalancing.

BlackRock Transfers Millions in Bitcoin Days After $1B ETF Purchases

As reported by the on-chain intelligence platform Arkham, BlackRock’s monitored cryptocurrency portfolio is currently valued at $98.95 billion, with Bitcoin and Ethereum comprising nearly its entire exposure.

Bitcoin constitutes the majority at 746,016 BTC, valued at approximately $82.43 billion, or 83% of the portfolio.

Ethereum follows with 3.762 million ETH, worth $16.51 billion, accounting for about 16.7%. Together, BTC and ETH make up 99.7% of BlackRock’s overall crypto holdings, rendering other assets insignificant by comparison.

Source: Arkham

The data reveals numerous structured transactions involving 300 BTC each, valued at around $33.5 million per transfer, sent to various addresses within the last 24 hours. Additional smaller transfers were noted, including one for 201.7 BTC, valued at $22.6 million.

The regularity of these transactions indicates ETF settlement flows or rebalancing activities rather than unusual wallet movements.

Moreover, Ethereum holdings did not exhibit any such transfers, suggesting that ETH is being held passively in custody while Bitcoin remains central to ETF-related liquidity management.

Source: Arkham

The transactions follow a significant accumulation phase last week. On August 14, just hours after unexpectedly high U.S. Producer Price Index data caused a sharp downturn in crypto markets, BlackRock’s iShares Bitcoin Trust (IBIT) and iShares Ethereum Trust (ETHA) executed one of their largest daily purchases on record.

The firm acquired 4,428 BTC, valued at approximately $526 million, and 105,900 ETH, worth $488 million, totaling over $1 billion in a single day.

The timing was notable. The Bureau of Labor Statistics reported that the PPI for July increased by 0.9%, significantly surpassing forecasts of 0.2% and marking the steepest rise since February 2025.

Despite the market decline, BlackRock continued to aggressively expand its ETF products. On August 18, the firm purchased 568 BTC, valued at $62.6 million, along with 65,901 ETH, valued at $292.6 million.

The next day, it acquired an additional 413 BTC for $46 million and 73,864 ETH valued at $342.6 million. In just two days, BlackRock added nearly $750 million in new crypto exposure.

These actions demonstrate the firm’s increasing influence over digital asset markets. BlackRock’s position of 746,000 BTC alone represents over 3.5% of Bitcoin’s total circulating supply, while its 3.7 million ETH holdings account for approximately 3.1% of Ethereum’s supply.

Bitcoin remains the primary reserve asset in its portfolio, actively cycled through ETF operations, while Ethereum serves a complementary role as a long-term strategic reserve.

This aggressive accumulation contrasts with recent investor sentiment. U.S.-listed spot Bitcoin ETFs experienced six consecutive days of outflows last week, totaling over $1 billion.

The largest daily redemption occurred on August 19, with $523 million withdrawn as Bitcoin corrected from its record highs.

Ethereum ETFs Surpass Bitcoin as Inflows Reach $4B in August

Ether spot exchange-traded funds (ETFs) have experienced a significant rebound in August, attracting billions in new capital and surpassing Bitcoin counterparts in daily inflows.

Data from SoSoValue indicates that U.S.-listed Ether ETFs have garnered $4 billion in net inflows this month, raising their total assets to $30.17 billion, which is equivalent to 5.4% of Ethereum’s market capitalization.

Since their inception in July 2024, Ether ETFs have accumulated $13.6 billion, with August marking their second-strongest month on record.

This turnaround follows a tumultuous start to the month. On August 19, Ether ETFs experienced their worst trading day to date, with $429 million in outflows, primarily driven by significant redemptions from Fidelity and Grayscale.

However, just a day later, inflows surged. BlackRock’s iShares Ethereum Trust (ETHA) added $233.6 million on August 21, while Fidelity’s FETH gained $28.5 million, bringing net inflows close to $288 million. The momentum continued with $337.7 million on August 22, $443.9 million on August 25, and a record $455 million on August 26.

BlackRock has established itself as the dominant player in Ether ETFs. Its ETHA product alone holds $17.2 billion in net assets, accounting for more than half of the market. Fidelity follows with $3.7 billion, while Bitwise’s ETHV has risen to $3.2 billion. Grayscale’s ETHE, which has faced persistent redemptions, has recently recorded rare positive inflows, including $5.7 million on August 27.

This surge highlights a shift in institutional sentiment. Between August 21 and 26, Ether ETFs absorbed $1.83 billion, compared to just $171 million for Bitcoin funds. On August 26, Ethereum ETFs attracted $455 million, while Bitcoin counterparts managed only $81 million.

Analysts suggest that these flows reflect a growing institutional interest in Ethereum, positioning it as Wall Street’s second major crypto investment vehicle alongside Bitcoin.

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