- BlackRock has transferred 3,296 BTC to Coinbase worth $254 million.
- The transfer is connected with withdrawals from its Bitcoin ETF and cannot be attributed to the fund’s direct selling.
BlackRock, the world’s largest asset manager with $10 trillion in assets, has transferred 3,296 Bitcoin ($BTC), worth approximately $254 million, to Coinbase. Lookonchain first reported the transaction, which has stirred the cryptocurrency market again.
While large movements to centralized exchanges often signal a trading intent to sell, but here, this context leads in a different direction. Bitcoin was mainly traced to BlackRock’s iShares Bitcoin Trust ETF, a spot Bitcoin exchange-traded fund that has witnessed a recent rising trend of outflows. Also, it does not seem to be a market-timed liquidation but more likely a response to the redemption of some of these assets.
However, even after the transaction, BlackRock still retains a significant stake in Bitcoin. The asset manager currently holds 572,074 BTC and its value is almost $44.9 billion. However, a sharp boost in volume on Coinbase has caused concern among market players already on edge because of instability in the US macroeconomy.
The large volume of the transaction and the sender’s identity caused a stir in the market right from the onset. Seeing a quarter of a billion dollars worth of Bitcoins coming into Coinbase from a company like BlackRock is highly unusual and distressing. While other institutional players have made periodic transfers, no such movements from BlackRock have been witnessed since the inception of the ETF in January 2024.
BlackRock’s Custody Strategy
In parallel with the BTC movement, BlackRock submitted to the U.S. Securities and Exchange Commission for a new custodian designation for Anchorage Digital. Anchorage, a federally chartered digital asset trust bank, will handle parts of both IBIT and the $1.8 billion iShares Ethereum Trust ETF (ETHA).
Anchorage is reputable for providing institutional-grade custody services, and it is licensed to provide custody of digital assets under federal supervision. It also provides staking, governance, and token trading services as well. BlackRock’s recent SEC filings revealed that the firm could maintain multiple accounts at Anchorage to cater for assets held in its ETFs.
BlackRock described the structure as part of the firm’s ‘constant risk management strategy’ and an expansion of its foray into digital assets. The move signifies a more efficient approach to safeguard assets held through ETFs and complies with the requirements set by regulatory authorities.
Bitcoin Price Analysis
Bitcoin is currently at $77,090 and has closed 1.78% down from the day’s high, but analysts are still optimistic. The leading cryptocurrency is trading above the 21-week Exponential Moving Average (EMA), a key indicator that backs the current bull phase.
According to EGRAG CRYPTO, BTC can retain the bullish trend only if it stays above $67K. Failure to hold this level could discredit the current rally. EGRAG further noted there are three possible scenarios for Bitcoin.Â
A retracement may bring the price to $97k after touching $109k. During that phase, altcoins are expected to outperform, providing highly rewarding trades to traders.
The next target that has been forecasted is $177K, with a Fibonacci level of 1.618. This projection points to great expectations for altcoins as returns that can reach the 10X to 20X multiple are seen. A new bull run, fueled by assuredly more liquidity, could catapult BTC to above $250K, catalyzing further outsized gains in altcoins.
