BlackRock Reduces Cryptocurrency Holdings Amid Market Turbulence
The cryptocurrency landscape faced challenges this week as BlackRock, the globe’s leading investment firm, decided to decrease its investments in various digital currencies.
Significant Sell-Off of Bitcoin and Ethereum Assets
Throughout the week, BlackRock strategically divested a substantial total of $374 million in Bitcoin (BTC) and Ethereum (ETH). This move underscores a shift in their approach to these volatile digital assets.
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Bitcoin Spot ETF Experiences Notable Outflows
BlackRock’s Bitcoin spot ETF, known as IBIT, saw outflows totaling $261.30 million over a five-day period. Notably, the majority of this selling activity took place midweek. February 12 witnessed the most significant single-day withdrawal, with $157.60 million exiting the fund. This was preceded by another intense session on February 11, with $73.40 million withdrawn.
Additional sales activities were observed on February 9, amounting to $20.90 million, and on February 13, with $9.40 million leaving the fund. Despite a brief inflow of $26.50 million on February 10, it was insufficient to counteract the overall downward trend of the week.
Ethereum Spot ETF Faces Similar Challenges
Ethereum mirrored Bitcoin’s pattern, as BlackRock’s ETHA fund recorded total outflows of $112.70 million during the same timeframe. The most substantial outflow occurred on February 9, with $45 million leaving the fund. Continued selling pressure was evident on February 11 and 12, with $29.40 million and $29 million withdrawn, respectively.
Volatility Across the ETF Market
The broader ETF market experienced significant volatility throughout the week. Bitcoin spot ETFs witnessed substantial fluctuations, including a major net outflow of over $400 million on February 12, which followed robust inflows earlier in the week on February 9 and 10.
Similarly, Ethereum spot ETFs reported notable redemptions on February 11 and 12, despite experiencing smaller positive inflows on February 9 and 10.
Institutions Display Caution Towards Bitcoin and Ethereum
The emerging pattern indicates a risk-averse sentiment among institutional investors, who appeared to withdraw capital following previous accumulation phases. Although isolated inflow days suggest that demand has not entirely vanished, the overall trend for the week highlighted cautious positioning and widespread profit-taking across both Bitcoin and Ethereum ETFs.
Current Market Conditions for Bitcoin and Ethereum
Bitcoin continues to face challenges, trading below the $70,000 threshold at $68,885 as of press time, marking a 4% increase over the past 24 hours. Meanwhile, Ethereum is striving to maintain its $2,000 support level, currently valued at $2,052, with a gain of over 6% in the last day.
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