BlackRock Dumps $600M+ in Bitcoin & Ethereum – Is This the Start of a Bigger Unwind?

Wall Street's crypto love affair hits a snag as BlackRock offloads over half a billion in digital assets. The move sparks fresh debate about institutional commitment to decentralized finance.

Timing the market or losing faith?

The sell-off comes amid Bitcoin's struggle to reclaim its all-time high. While some see this as profit-taking, others detect a worrying pattern – traditional finance still treats crypto like a speculative toy rather than the future of money.

What the smart money knows (that you don't)

With $600 million exiting through the institutional backdoor, retail investors are left wondering if this is a blip or the beginning of a trend. One thing's certain: when BlackRock sneezes, the crypto markets catch a cold.

Bonus jab: Nothing says 'long-term conviction' like dumping assets right before the next halving – classic Wall Street timing.

Key Insights:

• Spot Bitcoin and Ethereum ETFs by BlackRock recorded more than $600 million in outflows.
• BlackRock’s ETHA saw the largest-ever outflow of $375 million, raising concerns among investors.
• Traders remain cautious on Bitcoin and Ethereum due to US tariffs and higher inflation prints.

Spot Bitcoin and Ethereum ETFs by BlackRock recorded massive outflows on Monday, raising concerns over crypto market direction in the coming weeks.

ETH price saw a rebound after Ethereum treasury companies purchased ETH worth millions. But, BTC price remained stuck under $115,000.

BlackRock iShares Bitcoin ETF Risk-Offs $292.2 Million

BlackRock spot Bitcoin ETF (IBIT) recorded $292.2 million in outflow, according to flow data from Farside Investors on August 5. The second consecutive outflow in IBIT, which coincided with it becoming the 2nd best ETF in flows a month.

Spot bitcoin ETFs in total saw $323.5 million outflow, with $40.1 million and $9.9 million from Fidelity’s FBTC and Grayscale’s GBTC ETFs. It was the 3rd consecutive outflow from Bitcoin ETFs, with the largest being $812 million last Friday.

Outflows from Bitcoin were recorded globally and are not restricted to the United States. CoinShares’ latest report showed $404 million in outflows from Bitcoin investment products last week.

This happened due to selloffs triggered by hawkish US Fed, strong economic data, and capital rotation to altcoins. Glassnode reasoned that the outflow interrupted bullish sentiment, turning investors cautious as Bitcoin price tumbled.

BlackRock Ethereum ETF Records $375 Million in Outflow

Spot ethereum ETFs saw $465.1 million in net outflow on Monday. BlackRock’s ETHA led with $375 million outflow, followed by 55.1 million outflow from Fidelity’s FETH.

Grayscale ETH ETF recorded $28 million in outflow, while $ 7 million moved out from Grayscale’s ETHE.

Notably, this was the largest-ever net outflow from spot Ethereum ETFs, as well as from BlackRock. Ethereum ETFs saw second consecutive day of outflow, with $152.3 million witnessed last Friday.

Experts claim ETF inflows were intermittent and not stable during periods when funds were withdrawn from ETFs. Also, there was no alternative demand to compensate for this shortfall.

Are Bitcoin and Ethereum Losing Bullish Sentiment?

US tariffs and higher inflation prints destabilized global markets, weak jobs data did little to improve sentiments. While traders bet for Fed rate cut in September renewed, it also failed to lift BTC and ETH prices.

According to K33 Research, BTC fell and ETH followed as futures activity turned lower and ETF outflows rose. BTC holds $112K–$116K despite a bullish U.S. jobs report as liquidation risks remain high and traders stay cautious.

Bitcoin price climbed 0.30% in the past 24 hours, with the price currently trading at $114,695. The 24-hour low and high were $113,800 and $115,729, respectively.

Furthermore, the trading volume has increased by 40% in the last 24 hours, indicating traders look for entry at dips.

Coinglass’ Bitcoin Liquidation Heatmap data showed high leverage liquidity. Liquidation of either long or short high leverages could impact sentiment again, triggering muted action in BTC price.

Meanwhile, ethereum price jumped nearly 3% over the last 24 hours. The price was trading at $3,672, with an intraday low and high of $3,550 and $3,734, respectively.

Trading volume shoots over 46% in the last 24 hours, indicating a significant increase in buying sentiment among traders.

Whales and institutions were recorded to buy ETH at dips. Arkham reported a wallet address 0x18A purchased $105.5 million in ETH from Galaxy Digital.