Amid the ongoing cryptocurrency volatility, BlackRock, the world’s largest investment firm, has transferred more than $500 million worth of Bitcoin (BTC) and Ethereum (ETH) to Coinbase Prime hot wallets.
This transfer suggests the investment manager may be preparing for potential selling pressure linked to ETF redemptions.
Data indicates that the asset manager moved 5,847 BTC, valued at approximately $449.5 million, from its iShares Bitcoin Trust (IBIT), along with 26,269 ETH worth about $55.4 million from its Ethereum ETF entities in multiple rapid batches, bringing the total to more than $504.9 million, according to onchain insights retrieved from Arkham on May 19.
This substantial movement took place within a short period and involved repeated transfers, often in roughly 300 BTC increments for the Bitcoin portion.
Deposits of this nature to Coinbase Prime are commonly associated with the operational mechanics of spot ETFs, particularly to facilitate liquidity for authorized participants during creations and redemptions.
The timing aligns closely with significant outflows from BlackRock’s crypto ETF products. IBIT recorded one of its largest single-day redemptions of the year on May 18, with approximately $448 million in net withdrawals, contributing to broader U.S. spot Bitcoin ETF outflows exceeding $648 million that day.
Ethereum ETFs also faced continued pressure, adding to multi-day redemption trends across BlackRock’s digital asset offerings.
Such large institutional transfers often occur when investors redeem ETF shares, prompting the movement of underlying cryptocurrencies to exchanges such as Coinbase Prime for custody, execution, or potential liquidation.
Although these transfers do not necessarily signal immediate selling pressure, their scale has attracted attention as Bitcoin trades within a tight range below the $80,000 mark.
BlackRock increases Bitcoin exposure
Interestingly, despite the recent outflows, BlackRock’s iShares Bitcoin Trust has accumulated Bitcoin valued at over $537 million in May 2026.
The fund has increased its BTC holdings by over 8,000 in May, rising from about 810,800 BTC on May 1 to 818,840 units on May 19, as reported by Finbold.
By the end of the first week of May, IBIT’s Bitcoin holdings had surged to roughly 823,000 coins, representing an increase of 13,000 BTC.
Over the subsequent days through Tuesday, BlackRock’s IBIT trimmed its BTC holdings by 6,000 coins to around 817,000 units.
