BlackRock-linked wallets transferred large sums of Bitcoin and Ethereum to Coinbase Prime on multiple occasions between October 2025 and January 2026, a pattern tied to ETF operational flows rather than an outright sell-off. The movements — which totaled roughly $430 million on key dates — highlight how institutional custody and redemption mechanics are now driving large on-chain flows.
Data compiled from reporting and on-chain monitors showed these transfers coincided with sizable outflows from BlackRock’s spot crypto ETFs, underscoring the settlement role of prime brokers in ETF creation and redemption processes.
On october 21, wallets associated with BlackRock moved 2.854 BTC (≈ $314 million) and 29.639 ETH (≈ $115 million), totaling about $430 million. Subsequent transfers included 2.405 BTC and 24.760 ETH on january 9 (≈ $293.6 million) and 3.743 BTC with 7.204 ETH on january 13 (≈ $361 million).
Another large movement on january 22 involved 3.070 BTC and 52.800 ETH — again roughly $430 million in combined value.
Reporting attributed these flows to operational activity tied to BlackRock’s iShares Bitcoin Trust (IBIT) and iShares Ethereum Trust (ETHA). Data from industry monitors and outlets framed the transfers as settlement activity routed to Coinbase Prime’s institutional escrow and custody services rather than immediate liquidation orders.
Context and market implications
Market reporting linked several of these transfers to heavy redemption weeks for spot ETFs. For example, one reporting strand noted net outflows of about $356 million from IBIT and $250 million from ETHA around january 22 movement, suggesting those redemptions required on-chain settlement through Coinbase Prime.
The repetition of this pattern across October 2025 and January 2026 indicates a routine operational workflow for handling ETF liquidity.
The institutional use of Coinbase Prime as a prime broker and custodian reflects the rising importance of regulated, institutional-grade infrastructure for large asset managers. Analysts and monitors described the transfers as consistent with liquidity management and periodic rebalancing tied to authorized participant activity, rather than a directional signal that BlackRock was exiting positions.
For traders and allocators, the practical takeaway is that substantial on-chain transfers can reflect back-office ETF mechanics rather than a simple directional bet. That distinction matters because settlement-driven flows can still create short-term volatility if market makers and authorized participants adjust exposure quickly.
Looking ahead, investors are focusing on continued ETF flows and redemption activity as the next test of market liquidity and price resilience. How authorized participants and custodians manage settlement windows will determine whether similar transfers translate into transient market pressure or remain routine operational traffic.
