-
BlackRock deposited 2,563 BTC and 49,852 ETH into Coinbase, possibly with the intention of selling the tokens.
-
This comes after cryptocurrency ETFs experienced outflows yesterday.
-
Cryptocurrency options worth $2.4 billion are set to expire today.
BlackRock, the world’s largest asset manager, appears ready to sell off Bitcoin and Ethereum after crypto ETFs recorded daily net outflows yesterday. Meanwhile, $2.4 billion worth of cryptocurrency options are about to expire, another development that could spark market volatility.
Arkham data shows that the asset manager deposited 2,563 BTC (worth approximately $173 million) and 49,852 ETH (worth $97 million) into Coinbase. This suggests that the company is looking to sell the tokens, especially after yesterday’s outflow from its crypto ETF.
SoSoValue data shows that BlackRock’s daily net outflow of Bitcoin was US$164 million, accounting for almost all of the US$165.76 million net outflow recorded by the BTC ETF as a whole. At the same time, the company’s Ethereum ETF saw a net outflow of $96.8 million, which also accounted for the majority of the $130.19 million ETH ETF recorded yesterday.
This continues institutional outflows from these crypto ETFs, with the BTC ETF on track to record net outflows for the fourth consecutive month, with outflows from these funds just over $1 billion so far this month. The same goes for Ethereum ETFs, which have seen $450 million in outflows so far this month.
Kevin O’Leary said that institutions are currently cautious due to the risks of quantum computing, and BlackRock and other crypto ETFs are seeing outflows. He noted that these institutions may limit their cryptocurrency allocations to 3% due to such quantum concerns.
Despite outflows from Bitcoin funds, Bloomberg analyst Eric Balchunas recently highlighted how the funds have outperformed the market since their launch two years ago. He noted that the funds still had net inflows of $52 billion over two years, exceeding their first-year forecast of only $5 to $15 billion.
BlackRock’s BTC and ETH deposits increased as $2.4 billion in cryptocurrency options on Deribit expired today. A $2 billion BTC option will expire with a maximum pain point of $70,000, while a $404 million ETH option will expire with a maximum pain point of $2,050.
CoinGape earlier reported that BTC, ETH, XRP, and SOL showed signs of rebound amid today’s short liquidation. BTC is likely to rebound today and hit a painful top price of $70,000.
