Amid ongoing volatility in cryptocurrency, BlackRock, the world’s largest investment firm, has transferred over $500 million worth of Bitcoin (Bitcoin) and Ethereum (Ethereum) to Coinbase Prime hot wallets.
This fund transfer suggests that portfolio managers may be preparing for potential selling pressure related to ETF redemptions.
Data shows that the asset management company transferred 5,847 bitcoins (worth approximately $449.5 million) from its iShares Bitcoin Trust (IBIT) and rapidly moved 26,269 ether in multiple batches from its Ethereum ETF (worth approximately $55.4 million), with a total transferred value exceeding $504.9 million, according to on-chain data. Insight from Arkham on May 19.
This significant change occurred over a short period and involved multiple transfers, with Bitcoin amounts typically transferred in increments of approximately 300 bitcoins.
Funds deposited into Coinbase Prime are typically related to the operational mechanics of spot ETFs, particularly to provide liquidity for authorized participants during creation and redemption periods.
This timing is closely linked to massive outflows from BlackRock’s cryptocurrency ETF products. On May 18, IBIT recorded its largest single-day redemptions of the year, with a net redemption amount of approximately $448 million, leading to overall net outflows from U.S. spot Bitcoin ETFs exceeding $648 million that day.
Ethereum ETFs are also facing sustained pressure, intensifying the multi-day redemption trend across BlackRock’s digital asset products.
When investors redeem ETF shares, such large institutional transfers typically occur, prompting the underlying cryptocurrencies to be transferred to exchanges like Coinbase Prime for custody, execution, or potential liquidation.
Although these transfers do not necessarily indicate immediate selling pressure, their size has drawn attention due to Bitcoin trading in a narrow range below $80,000.
BlackRock increases its Bitcoin investment
Interestingly, despite recent outflows, as of May 2026, BlackRock's iShares Bitcoin Trust has accumulated over $537 million worth of Bitcoin.
The fund increased its Bitcoin holdings by over 8,000 BTC in May, rising from approximately 810,800 BTC on May 1 to 818,840 BTC on May 19.Reported by: Fimbold
By the end of the first week of May, IBIT’s Bitcoin holdings had surged to approximately 823,000 BTC, an increase of 13,000 Bitcoin.
Over the following days until Tuesday, BlackRock’s IBIT reduced its BTC holdings by 6,000, bringing the total to approximately 817,000.