The world’s largest asset manager’s moves could signal a potential institutional pivot toward Ethereum.
BlackRock, the world’s largest asset manager, has been dumping Bitcoin (BTC) and purchasing Ethereum (ETH) over the past week, signaling a potential shift in institutional investor sentiment.
According to data from Onchain Lens and Arkham, BlackRock deposited 1,249.68 BTC (worth approximately $131.5 million) into Coinbase Prime earlier today, bringing its total Bitcoin deposits over the past two days to 5,362.37 BTC (valued at around $561 million).
Moreover, the asset manager also withdrew 37,241.4 ETH, worth $95 million, from Coinbase. Blockchain analyst LookOnChain said yesterday on X that this is BlackRock’s “first move to sell [Bitcoin] after more than a month of consistent buying.”
The company’s movements could signal growing institutional interest in digital assets that offer more than just a store of value, especially after the SEC’s recent letter stating that staking cryptocurrencies like ETH and SOL does not violate U.S. securities laws.
“Now that investors get that Bitcoin is digital gold, they’re asking: what else can crypto do? Ethereum’s smart contracts are the natural next step, and BlackRock is positioning itself accordingly,” said Austin King, CEO of Omni Labs. “BTC ETFs opened the door, but institutions are already preparing for the next wave.”
King explained that cryptocurrencies like Ethereum and XRP offer utility, “not just narrative,” and that’s where large-scale institutions are betting capital will flow into next.
BlackRock currently manages the iShares Bitcoin Trust (IBIT) and the iShares Ethereum Trust (ETHA) exchange-traded funds (ETFs). IBIT currently has $68.83 billion in net assets under management, while ETHA has $3.64 billion.
Trevor Koverko, co-founder of Sapien, echoed King’s sentiment, calling BlackRock’s move to unload Bitcoin and accumulate Ethereum “beyond notable.” Koverko similarly suggested this could reflect a major bet on Ethereum – particularly amid growing narratives around Ethereum ETFs, staking yields, and broader smart contract utility.
Koverko explained it could also illustrate a diversification rather than a bearish stance on Bitcoin. “This kind of institutional activity tends to ripple across both prices and investor sentiment,” he said.
Currently, BTC is trading at $106,000, up 2% over the past 24 hours. Meanwhile, ETH is changing hands at $2,630, up 2.3% over the past 24 hours and a whopping 43% over the past month, according to CoinGecko.
