While many regular investors were relaxing over the holidays, the world’s largest asset manager was taking major action.
BlackRock quietly moved $214 million worth of Bitcoin (BTC) and Ethereum (ETH) to Coinbase Prime in a series of year-end transactions, as Arkham reports.
These transfers come at a key time for the company’s crypto ETFs, as IBIT and ETHA see a decline in investor interest.
On-chain activity suggests that BlackRock no longer just holds crypto; it actively manages liquidity to deal with a wave of investor redemptions.
The $214 million change appears to be a direct response to slowing demand for US crypto ETFs.
Purchase of Bitcoin by BlackRock
Since December 18, BlackRock’s Bitcoin ETF (IBIT) has faced consistent outflows, with $7.9 million leaving the fund on December 29 alone.
On the same day, all US spot Bitcoin ETFs saw $19.3 million in withdrawals.
Ethereum ETFs are facing similar pressure, with BlackRock’s ETHA losing $13.3 million on Dec. 29, nearly doubling the entire day’s net outflow for Ethereum ETFs.
This trend shows that many institutional investors are exiting, likely due to tax losses and year-end profit-taking after a volatile final quarter.
Saylor’s countermovement
While ETF investors are pushing back, Michael Saylor’s (formerly MicroStrategy) strategy is doing the opposite.
On the same day, BlackRock recorded redemptions and Strategy purchased an additional 1,229 BTC for $108.85 million, according to Lookonchain data.
The company paid an average of $88,568 per Bitcoin, bringing its total holdings to an incredible 672,497 BTC.
Despite recent market fluctuations, Strategy currently has an unrealized profit of approximately $8.31 billion, an overall gain of 16%.
Two very different strategies
This creates an interesting contrast in the crypto market, in which BlackRock acts as a liquidity provider, moving BTC and ETH across exchanges to help ETF investors cash out.
Meanwhile, the strategy acts as a liquidity sink, buying Bitcoin and holding it for the long term, thereby removing supply from the market.
Yet despite all these movements, prices have barely reacted.
At press time, Bitcoin was changing hands at $87,900, up just 0.24% in 24 hours. On the other hand, Ethereum was trading at $2,974, with a slight gain of 0.45%.
This price-flow divergence, with large money movements without large price movements, shows that the market was likely expecting these year-end withdrawals.
Therefore, as we move into January, the focus will shift from these withdrawals to the sentiment of the new year.
It’s still unclear whether Saylor can attract retail investors to the market, but one thing is clear from the on-chain data: weak hands are exiting and the biggest players are simply repositioning for 2026.
Final Thoughts
- BlackRock’s year-end transfers show a shift toward active liquidity management, driven by large ETF redemptions and a slowdown in investor demand.
- MicroStrategy’s purchase of Bitcoin for $108 million creates a stark contrast, demonstrating strong long-term conviction even as ETF investors pull back.
