BlackRock, the world's largest asset manager, transferred approximately $361 million worth of Bitcoin (BTC) and Ethereum (ETH) to Coinbase Prime on January 12, 2026, sparking concerns about increased selling pressure for both major cryptocurrencies. According to on-chain data from Lookonchain, the transfers consisted of 3,743 BTC (valued at roughly $339.45 million) and 7,204 ETH (worth about $22.42 million).
This movement is linked to redemption activity in BlackRock's spot Bitcoin and Ethereum Exchange-Traded Funds (ETFs), specifically the iShares Bitcoin Trust (IBIT). Data indicates U.S. spot Bitcoin ETFs recorded a combined net outflow of 3,734 BTC on the day, with BlackRock's IBIT accounting for the bulk by shedding 2,791 BTC. Grayscale's products saw a further outflow of 891 BTC, while Fidelity's FBTC recorded a modest inflow of 87 BTC, insufficient to offset the selling.
The on-chain flows, tracked by platforms like Arkham Intelligence, show these were not merely accounting entries but involved real Bitcoin being delivered into exchange liquidity pools. Coinbase Prime serves as the primary settlement venue for U.S. spot Bitcoin ETF issuers. When ETF shares are redeemed, the underlying Bitcoin is typically routed through Prime before potentially being sold into the spot market, turning redemptions into direct sell-side pressure.
The timing of these transfers aligned with Bitcoin's price struggling to hold above the $91,000–$92,000 range after a brief rally, suggesting institutional flows are now a key driver of short-term price direction. Bitcoin's price dropped to $90,785, while ETH fell to $3,097. Trading volumes for both assets surged over 164% and 172%, respectively.
Market participants raised bearish concerns, viewing the large transfers as a cautionary sign. However, analysts note such movements are part of standard ETF creation and redemption processes, and BlackRock may be positioning assets for operational efficiency without intending to disrupt markets. The event underscores a structural shift in Bitcoin's market dynamics, where ETF inflows and outflows directly impact spot market liquidity and price action.
