The world’s largest asset manager is making moves. BlackRock has transferred approximately $270 million in Bitcoin and Ethereum to Coinbase, signaling potential offloading of positions. This development coincides with $2.4 billion in crypto options expiring today on Deribit, creating a volatile cocktail for market direction.
Breaking Down the BlackRock Bitcoin Ethereum Outflows
Arkham data reveals the transactions: 2,563 BTC ($173M) and 49,852 ETH ($97M) moved to the exchange. These transfers align perfectly with yesterday’s ETF outflow data. BlackRock’s IBIT saw $164 million in daily net outflows—accounting for nearly all of the $165.76M total Bitcoin ETF redemptions. Similarly, BlackRock’s ETHA recorded $96.80 million in outflows, dominating the $130.19M Ethereum ETF exodus.
This continues a troubling trend. Bitcoin ETFs are on track for their fourth consecutive month of net outflows, with over $1 billion exiting in February alone. Ethereum ETFs have bled $450 million month-to-date.
Why Is BlackRock Moving Funds?
Kevin O’Leary offered one explanation: institutions are growing cautious due to quantum computing risks, potentially limiting crypto allocations to 3% until the threat is resolved.
However, context matters. Despite recent outflows, Bloomberg’s Eric Balchunas notes Bitcoin ETFs have seen $52 billion in net inflows over two years—far exceeding initial predictions of $5-15 billion in year one.
The $2.4 Billion Options Expiry Wildcard
Today’s transfers arrive as $2 billion in BTC options (max pain: $70,000) and $404 million in ETH options (max pain: $2,050) expire on Deribit. Max pain theory suggests prices may gravitate toward these levels to maximize option sellers’ profits.
Adding fuel: today’s PCE inflation data. Wall Street expects a hot reading of 2.9% , which could trigger further risk-off sentiment.
My Thoughts BlackRock Bitcoin Ethereum outflows at this scale demand attention. Moving funds to Coinbase typically precedes selling, especially when correlated with ETF redemptions. This isn’t a mystery—it’s position adjustment.
But here’s the nuance: BlackRock may simply be rebalancing or preparing for options expiry settlement, not abandoning the asset class. The $52B two-year net inflow figure reminds us that context matters.
The options expiry adds short-term directional uncertainty. Max pain at $70K BTC and $2,050 ETH suggests potential pinning toward those levels. However, PCE could override everything. A hot print + options expiry + institutional selling = elevated volatility.
Short-term traders should hedge. Long-term accumulators should watch these levels for potential entry zones.
