New York, June 4, 2025 – Global asset manager BlackRock has shifted $561 million worth of Bitcoin into Ethereum, marking one of the largest institutional crypto portfolio adjustments this year. The transactions, verified via blockchain analytics platform Lookonchain, occurred between May 30 and June 2 through Coinbase Prime. Simultaneously, BlackRock acquired $69 million in Ethereum, aligning with 11 consecutive days of institutional inflows into Ethereum ETFs.
Transaction Mechanics
- Bitcoin Offload: BlackRock moved 5,362 BTC in 300-BTC batches to Coinbase Prime, matching $561 million in outflows from its iShares Bitcoin Trust (IBIT) during the same period.
- Ethereum Accumulation: The firm withdrew 27,241 ETH (~$69 million), directing assets toward addresses linked to its Ethereum ETF infrastructure. This coincided with Ethereum ETFs attracting $78.2 million in inflows on June 2 alone, with nearly half of the inflows going into BlackRock’s fund.
Market Context
The rebalancing follows Bitcoin’s retreat from its May all-time high of $112,000 to $103,000, triggering profit-taking by institutional holders. U.S. Bitcoin ETFs saw $1.23 billion in outflows during this window. Conversely, Ethereum’s price held near $3,800, buoyed by growing institutional interest and its expanding utility in decentralized finance (DeFi).
Strategic Drivers
- Portfolio Diversification: BlackRock’s pivot reflects institutional demand for Ethereum’s dual role as a smart-contract platform and store of value. Analysts note Ethereum’s integration in tokenized real-world assets (RWAs) – like BlackRock’s $1.7 billion tokenized treasury fund (BUIDL) on Ethereum – enhances its appeal.
- Regulatory Tailwinds: Recent U.S. state-level policies, such as Kentucky’s laws protecting self-custody rights and exempting staking rewards from securities classification, favor Ethereum’s proof-of-stake model.
- ETF Momentum: Ethereum ETFs have consistently outperformed Bitcoin funds, with BlackRock’s iShares Ethereum Trust leading May 2025 inflows.
Industry Response
Bloomberg ETF analyst Eric Balchunas observed: “BlackRock’s rebalancing signals maturity in institutional crypto strategies. They’re actively managing digital assets like any other portfolio component”. The firm has not publicly commented, but the precision of the transactions – matching IBIT outflows dollar-for-dollar – suggests strategic repositioning rather than bearishness on crypto overall.
Future Implications
- Ethereum’s Institutional Profile: BlackRock’s sBUIDL fund, which tokenizes U.S. Treasurys for DeFi use, demonstrates Ethereum’s infrastructure edge. Its integration with lending protocols like Euler allows Treasurys to function as crypto collateral.
- Market Sensitivity: With top holders controlling ~6% of Bitcoin’s supply, institutional flows may amplify volatility. Ethereum could test $4,000 resistance if ETF inflows persist.
The Bottom Line: BlackRock’s $561 million shift underscores crypto’s evolution into a multi-asset class. As Ethereum’s utility in tokenization and DeFi expands, institutions appear to be hedging Bitcoin’s volatility with strategic ETH allocations – a trend likely to accelerate as traditional finance embraces programmable assets.