Major Institutional Shift? Bitcoin And Ethereum Are Steadily Leaving BlackRock’s Crypto Portfolio

Bitcoin and Ethereum, the two largest cryptocurrency assets, continue to face persistent downside pressure, with BTC stuck below the $70,000 level and ETH below the $2,000 mark. With BTC and ETH recording steady losses, BlackRock has started to reduce its exposure to both assets, selling a huge chunk of its holdings over the past few days.

BlackRock Adjusts Bitcoin And Ethereum Exposure

In the volatile cryptocurrency landscape, several institutions are no longer doubling down on Bitcoin and Ethereum, as evidenced by a sharp sell-off on the institutional level. BlackRock, the largest asset management firm, is taking the crypto spotlight after its recent moves to dump both coins.

When large firms like BlackRock are selling, it typically raises concerns about the stability of the asset, as they trim positions and shift risk conditions. Although opinions differ and reasons concerning the selling activity are yet to be determined, sentiment and liquidity can be impacted even by how institutional distribution is perceived.

Recent flows and on-chain data show that the leading asset manager recently deposited another $234.3 million worth of Bitcoin to Coinbase Prime. At the same time, BlackRock moved over $60.83 million worth of ETH to the same platform. In total, both transactions were valued at approximately $295.13 million. 

According to Milk Road, a market expert and investor, when assets migrate to Coinbase Prime, it usually indicates that they are getting ready to sell. This substantial sell-off from BlackRock demonstrates how attentively markets monitor major participants and how susceptible prices are to indications of institutional repositioning. 

As the price of both assets continues to move sideways, the move points to gradual weakening conviction in their near-term prospects. However, this is not entirely a negative moment for the leading assets. This is due to the fact that any selling could potentially be completely offset by the buy pressure of the day.

On Monday, February 9, BlackRock moved BTC and ETH valued at $247.71 million to Coinbase Price. However, there were bullish flows across the Exchange-Traded Funds (ETFs) market for the day. The same day, Bitcoin ETFs recorded over $144.90 million inflows, while Ethereum ETFs saw more than $57.00 million inflows.

BTC And ETH Losing To XRP

Given the selling activity around Bitcoin and Ethereum, their trading volumes have fallen behind that of XRP, implying a shift toward the altcoin. In Asia, particularly South Korea, XRP has flipped BTC and ETH in terms of volume as reported by X Finance Bull on X. The jump suggests increased speculative activity and renewed interest from Asian traders, as liquidity centers around XRP rather than the larger market leaders.

Many analysts are beginning to put XRP ahead of BTC and ETH, claiming it will lead the market in the upcoming years. Veteran investor and entrepreneur Patrick L Riley stated that if Bitcoin does not break $150,000 this year and reclaim its 12-year trend line, it is likely to retest the $1,000 mark.

Whatever the scenario, Riley is confident that XRP will become the crypto leader within the next 6 years. After that, Bitcoin will be reduced to a collectible for nostalgia for those people who are interested in the macabre.