Coinbase Prime Sees Major Institutional Inflow as BlackRock Deposits $273M in Bitcoin and Ethereum

In a significant institutional move that underscores the evolving landscape of cryptocurrency custody, BlackRock has transferred a substantial portfolio of digital assets to Coinbase Prime. This transaction, involving 2,019 Bitcoin (valued at approximately $182 million) and 29,928 Ethereum (worth around $91 million), represents a total transfer of $273 million. The event, occurring in late December 2025, highlights a strategic shift in how major financial institutions are managing their crypto exposure, even as related investment products like spot Bitcoin ETFs experience net outflows. The timing of this deposit is particularly noteworthy, coinciding with Bitcoin's price reclaiming the psychologically important $90,000 level, a milestone that has reinvigorated market sentiment. This action by the world's largest asset manager signals a deepening institutional commitment to the crypto ecosystem, specifically through trusted, regulated custodial partners like Coinbase Prime. It reflects a maturing phase where holding the underlying assets in secure, institutional-grade custody solutions is becoming as critical, if not more so, than offering derivative exposure through traditional financial instruments. The move suggests that BlackRock is positioning itself for both long-term holding strategies and potential operational flexibility within the digital asset space, reinforcing Coinbase Prime's role as a pivotal infrastructure provider for Wall Street's foray into cryptocurrency.

BlackRock Moves $273M in Bitcoin and Ethereum to Coinbase Prime Amid ETF Outflows

BlackRock executed a major cryptocurrency transfer this week, depositing 2,019 Bitcoin ($182M) and 29,928 ethereum ($91M) to Coinbase Prime. The move comes as institutional interest in crypto custody solutions intensifies, despite recent outflows from BlackRock’s Bitcoin ETF products.

Market observers note the timing coincides with Bitcoin’s rebound past $90,000—a psychological threshold that has reinvigorated bullish sentiment. Ethereum’s position in the transfer underscores its growing institutional appeal, even as Ethereum funds bled $558M last week without a single inflow.

‘When whales move, markets listen,’ said one trader, referencing blockchain data from Arkham Intelligence. The transfer suggests BlackRock may be positioning for year-end portfolio rebalancing or preparing liquidity for institutional clients.

Coinbase Foresees Tax Arbitrage Opportunity in Trump's 2026 Gambling Policy Shift

Coinbase's institutional research division has identified a potential regulatory arbitrage scenario emerging from the TRUMP administration's 2026 tax overhaul. The "One Big Beautiful Bill Act" will restrict gambling loss deductions to 90% of winnings, creating a 10% taxable gap that doesn't exist under current parity rules.

Blockchain-based prediction markets may capitalize on this structural shift. Unlike traditional sportsbooks where the new tax applies, decentralized platforms could maintain full loss offsetting through their classification as trading platforms rather than gambling venues. David Duong, Coinbase's institutional research lead, suggests this distinction might drive migration of sophisticated gamblers to crypto-native prediction markets.

The analysis comes amid growing institutional interest in blockchain prediction infrastructure, despite ongoing regulatory ambiguity. Coinbase notes these platforms are increasingly viewed as price discovery mechanisms rather than pure gambling vehicles—a narrative that could gain traction under the new tax regime.