BlackRock Shifts $366M from Ethereum to Bitcoin as BTC Surges to New Heights

BlackRock makes major crypto pivot—dumping Ethereum to double down on Bitcoin's explosive growth.

The $366 Million Flip

Wall Street's heavyweight just executed a massive portfolio rebalance—moving a staggering $366 million from Ethereum into Bitcoin. This isn't just portfolio tweaking—it's a strategic bet on Bitcoin's dominance as institutional money floods into the flagship cryptocurrency.

Bitcoin's relentless rally leaves altcoins in the dust while traditional finance scrambles to keep up—proving once again that crypto moves faster than a hedge fund's compliance department.

TLDR

• BlackRock sells Ethereum and buys $366M of Bitcoin, signaling a market shift.
• BlackRock’s Ethereum Trust saw $17.39M in outflows as Bitcoin gains traction.
• Bitcoin’s price rose by 0.54%, highlighting institutional demand amid shifts.
• Ethereum shows strong short-term growth but is less favored by institutions.

BlackRock has recently made a major move by reallocating $366 million from ethereum (ETH) to Bitcoin (BTC), signaling a notable shift in its institutional investment strategy. This shift comes as Bitcoin continues to show strong growth while Ethereum experiences more volatile short-term performance. The transaction, confirmed by Arkham Intelligence data, marks a decisive institutional preference for Bitcoin over Ethereum.

BlackRock Sells Ethereum, Boosts Bitcoin Exposure

BlackRock has sold off a portion of its Ethereum holdings and allocated the proceeds into Bitcoin. The iShares Bitcoin Trust (IBIT) saw net inflows of $366.2 million, while its Ethereum counterpart, the iShares Ethereum Trust (ETHA), experienced net outflows of $17.39 million. This move reflects a growing institutional trend favoring Bitcoin over Ethereum, with data from Arkham Intelligence and SoSoValue confirming this shift.

The firm’s decision to sell Ethereum and buy Bitcoin isn’t an isolated event. Similar actions were recorded in previous months, where BlackRock reduced its ETH positions in favor of BTC. The firm’s ongoing reallocation strategy points to Bitcoin as the preferred reserve asset for institutional investors. As Bitcoin’s price rises, this strategic move aligns with BlackRock’s broader investment goals.

Institutional Shift From Ethereum to Bitcoin

BlackRock’s decision to sell Ethereum and increase its bitcoin holdings is part of a wider trend observed in institutional investor behavior. According to Arkham Intelligence, BlackRock’s Ethereum holdings have been steadily reduced, while its Bitcoin allocations have grown significantly. This shift indicates that institutional investors may view Bitcoin as a more stable and secure store of value compared to Ethereum, despite Ethereum’s more robust recent growth.

Other major funds are following a similar path. Fidelity’s FBTC, for instance, saw $134.71 million in inflows, while Bitwise’s BITB attracted $40.43 million. These trends suggest a larger preference for Bitcoin across institutional players, signaling that it is gaining favor as the primary cryptocurrency for long-term investments.

Bitcoin’s Strong Performance Amid Shifting Trends

The institutional shift towards Bitcoin has been accompanied by impressive market performance. Bitcoin’s price ROSE by 0.54% to $116,162, with a 4.95% increase over the past week. This growth further solidifies Bitcoin’s position as an asset that can potentially hedge against inflation. Over the past year, Bitcoin has surged by more than 102%, underlining its strong appeal in the eyes of investors.

Ethereum, while showing short-term growth, remains behind Bitcoin in institutional preference. Ethereum’s price increased by 4.01% over the last 24 hours, with its weekly gain standing at 8.05%. Ethereum has experienced a NEAR 139% increase over the past six months, but the outflows from BlackRock’s Ethereum Trust highlight the ongoing preference for Bitcoin among large investors.

The growing interest in Bitcoin is also reflected in Bitcoin futures and open interest data. Despite Ethereum’s strong market performance, it remains less favored by institutional investors compared to Bitcoin. This shift in capital flows further underscores Bitcoin’s continued dominance in the crypto market.