BlackRock Sells Ethereum, Purchases $366M in Bitcoin

TLDR

Table of Contents

BlackRock reallocates $366M into Bitcoin ETFs, selling Ethereum.
Bitcoin’s price rises 0.54%, outpacing Ethereum’s short-term growth.
Ethereum sees $17.39M in outflows, while Bitcoin ETFs gain $366M.
Bitcoin’s market dominance continues, with a 102% rise in the past year.

In a notable shift within the digital asset market, BlackRock has moved a substantial $366 million into Bitcoin ETFs, selling off Ethereum in the process. This change in asset allocation reflects the growing institutional preference for Bitcoin, as major players like BlackRock adjust their portfolios. Bitcoin’s steady gains and its long-term appeal as a store of value continue to drive institutional interest, while Ethereum sees stronger short-term growth.

BlackRock’s Strategic Shift: Selling Ethereum for Bitcoin

BlackRock’s decision to sell off Ethereum and reallocate funds into Bitcoin comes amid increasing institutional interest in the leading cryptocurrency. According to data from Arkham Intelligence and SoSoValue, BlackRock’s iShares Bitcoin Trust (IBIT) saw net inflows of $366.2 million, while its iShares Ethereum Trust (ETHA) experienced net outflows of $17.39 million. The reallocation shows a shift in focus, with Bitcoin drawing more attention from institutional investors than Ethereum at this moment.

The funds moving into Bitcoin ETFs are being seen as a reflection of Bitcoin’s continued appeal as a reserve asset. While Ethereum has experienced strong short-term price growth, Bitcoin’s steady rise over the last year and its positioning as a hedge against inflation have made it a preferred asset for many large investors. BlackRock’s move follows a trend of gradually increasing its Bitcoin holdings while reducing its exposure to Ethereum.

Institutional Rotation From Ethereum to Bitcoin

The shift from Ethereum to Bitcoin is evident in the flow of funds into Bitcoin-related products. BlackRock’s decision is not an isolated case, with other institutional players such as Fidelity and Bitwise also increasing their Bitcoin ETF investments. Fidelity’s FBTC saw inflows of $134.71 million, while Bitwise’s BITB attracted $40.43 million. This broader shift points to a significant rotation in the institutional market, where Bitcoin is increasingly seen as the leading asset.

This rotation reflects Bitcoin’s strong performance in recent months. On September 12, 2025, Bitcoin’s price rose by 0.54%, trading at $116,162. In the past year, Bitcoin’s price has surged by over 102%, cementing its position as the dominant asset in the cryptocurrency space. Despite Ethereum’s impressive growth over the last year—up nearly 98.5%—Bitcoin’s market dominance continues to outpace Ethereum, which has resulted in larger ETF inflows for Bitcoin.

BlackRock’s Position in the Crypto Market

BlackRock’s actions are indicative of the firm’s broader approach to the cryptocurrency market. As the world’s largest asset manager, BlackRock has been cautious but strategic in its adoption of digital assets. With its recent moves, BlackRock shows its preference for Bitcoin while continuing to explore opportunities in the crypto space. The firm has also been preparing to tokenize ETFs on the blockchain, signaling its long-term commitment to the market.

Bitcoin’s growing importance in BlackRock’s portfolio highlights the cryptocurrency’s status as a mainstream financial asset. As traditional financial institutions embrace Bitcoin, its institutional adoption continues to rise, solidifying its role as a leading asset class. While Ethereum remains a key player in the market, BlackRock’s shift toward Bitcoin suggests that large investors are currently more focused on Bitcoin’s stability and growth potential in the face of market uncertainty.

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