BlackRock moved 7,432 Bitcoins to Coinbase Prime. Calculating that the price of Bitcoin was around $60,000, the size of this transfer reached approximately $446 million. The movement of 8,150 Ether in the same trading group indicated that the simultaneous buyback process of the company’s crypto ETF products came to the fore.
ETF buybacks are the focus of the transfer
The move was made through Coinbase Prime, BlackRock’s institutional custody and settlement partner. Coinbase Prime is involved in the origination and redemption processes for IBIT, BlackRock’s iShares Bitcoin Trust product. For this reason, large on-chain transfers are evaluated within the framework of ETF operation before they constitute a direct market sale.
Mini glossary: Coinbase Prime is a platform that provides custody, transaction and settlement services for large institutions. In ETF redemptions, moving assets between authorized participants and custodial accounts may be a regular part of this system.
Lookonchain announced that BlackRock transferred 7,432 BTC to Coinbase Prime, marking the company’s largest single-day net Bitcoin outflow ever.
When ETF investors return their shares, the underlying assets may need to be moved between relevant accounts to complete the process. Therefore, the recent movement of 7,432 BTC and 8,150 ETH is not considered conclusive evidence of a sudden and direct sell-off in the open market. On the other hand, the size of the transfer raised question marks regarding the course of corporate demand.
June data showed pressure getting stronger
The timing was particularly noteworthy because IBIT faced a significant wave of exits throughout June. The fund recorded a net outflow of $444.5 million on June 26. This figure was one of the highest daily pullbacks seen since the product began trading.
Spot Bitcoin ETFs in the US wrote a total net outflow of $1.79 billion between June 22 and June 26. During this period, approximately $1.3 billion came from IBIT. Thus, BlackRock was at the center of the latest buyback wave.
As the market weakens, all eyes turn to July flows
In the broader picture, risk appetite for crypto assets also appears to have weakened. Bitcoin recently broke below $60,000 and fell as low as $58,190. This decline in price suppressed demand for ETFs and led institutional investors to become more cautious.
June was a tough month for US spot Bitcoin ETFs. While it was stated that monthly net outflows reached 4.06 billion dollars, there was a net outflow of 2.43 billion dollars in May. Thus, the total amount coming out of the ETF segment in two months reached approximately 6.5 billion dollars.
This chart showed a reversal of direction following the strong inflows seen following launches in January 2024. Since IBIT is one of the market’s largest products, movements in the fund look more dramatic in dollar terms. If prolonged buybacks continue, authorized participants may be required to sell the underlying Bitcoin, which may create additional pressure during periods of weak liquidity.
The market is now tracking July flows. Slowing down buybacks could ease concerns. A new breakout series could cause continued pressure on Bitcoin around the $60,000 region.
