TLDR
BlackRock sold $151M in ETH and purchased $290M in BTC on September 3, 2025
Ethereum ETFs attracted $3.87B in August before flows reversed in early September
Bitcoin ETFs saw $332.7M in inflows this week, led by Fidelity and BlackRock
BlackRock has grown ETH holdings by 252.3% vs 35.3% for BTC in 2025
Fed rate-cut expectations (87% probability) are driving renewed Bitcoin demand
Asset management giant BlackRock has made a dramatic shift in its cryptocurrency portfolio, selling $151 million in Ethereum while simultaneously purchasing $290 million in Bitcoin. This reallocation signals a change in institutional sentiment between the two largest cryptocurrencies.
Data from multiple sources confirms this strategic pivot. Arkham Intelligence first reported the activity, showing $151.4 million in ETH exiting BlackRock-linked wallets, followed almost immediately by $289.8 million in Bitcoin purchases. ETF flow data from SoSoValue validated these movements, with the iShares Ethereum Trust (ETHA) recording a $151.39 million outflow while the iShares Bitcoin Trust (IBIT) logged a $289.84 million inflow on the same day.
The near-exact match between on-chain transfers and ETF flows provides strong confirmation that BlackRock is redirecting capital from Ethereum to Bitcoin. Among Bitcoin ETFs, BlackRock’s IBIT dominated inflows with nearly $290 million, positioning the firm as the primary driver of Bitcoin investment during this period.
This recent movement represents a reversal of BlackRock’s earlier strategy. At the beginning of 2025, the firm held approximately 552,550 BTC valued at $51.16 billion and 1.07 million ETH worth $3.59 billion. By September 3, those balances had grown to 747,469 BTC (about $82.92 billion) and 3.77 million ETH (roughly $16.65 billion).
In percentage terms, BlackRock increased its Bitcoin holdings by 35.3% in 2025, while its Ethereum position grew by a massive 252.3%. This means the pace of ETH accumulation was about 7.15 times faster than BTC growth, showing a clear preference for Ethereum through most of the year.
Market Response to Institutional Flows
The market reacted to BlackRock’s portfolio adjustment with price movements in both cryptocurrencies. According to TradingView data, Bitcoin dropped 2.09% following the reallocation, settling at $109,422. Ethereum experienced a steeper decline of 3.29%, falling to $4,306 and losing recent gains.
This price action demonstrates how institutional flows now influence cryptocurrency markets almost in real time. BlackRock’s rotation created the largest single-day ETF redemption in months, combined with one of the strongest Bitcoin commitments of the year.
Despite these short-term fluctuations, both assets maintain strong yearly performance, with Bitcoin up more than 90% and Ethereum up 77% over the past 12 months. The immediate market response, however, showed Ethereum bearing the sharper decline.
The difference between ETH outflows and BTC inflows may indicate growing caution toward altcoins among traditional asset managers. While Ethereum’s long-term performance remains strong, the recent positioning suggests a shift toward Bitcoin’s greater liquidity and perceived safety.
Fed Policy and Cryptocurrency Demand
The timing of BlackRock’s crypto reallocation coincides with changing expectations for Federal Reserve monetary policy. Markets now price an 87% probability of a Fed rate cut at the upcoming September meeting, creating a more favorable environment for risk assets like cryptocurrencies.
Analysts connect Bitcoin’s recent price movements to this macroeconomic outlook. A recent market report attributed Bitcoin’s rally to “a mix of sustained institutional inflows and macroeconomic optimism” following signals of a more dovish Fed approach. CoinSwitch Markets data further highlights this relationship, noting that Bitcoin ETFs received $507.5 million in inflows during a recent week, with gains partly attributed to rate-cut expectations.
The near-certainty of Fed easing appears to be renewing institutional appetite for Bitcoin as a “digital gold” investment, even as some Ethereum funds experience outflows. This shift in monetary policy expectations may continue to influence cryptocurrency markets in the coming weeks.
BlackRock’s Bitcoin ETF now holds over $58 billion in cumulative net inflows, compared to $12.97 billion in its Ethereum ETF. This widening gap in institutional exposure suggests Bitcoin may maintain market dominance in the near term unless new catalysts emerge for Ethereum.
After August’s blockbuster performance for Ethereum-based funds, which brought in $3.87 billion of net new money, early September has shown a clear rotation back toward Bitcoin. This trend may persist as institutional investors respond to changing market conditions and Federal Reserve policy expectations.
Bitcoin’s price has responded positively to renewed ETF buying, rebounding toward the $111,000-$112,000 range as institutional demand increases.
The most recent ETF data shows BlackRock actively rebalancing its cryptocurrency exposure, which may indicate a strategic reassessment of the relative value and risk of Bitcoin versus Ethereum in the current market environment.
