TLDR
- BlackRock sold $151M Ethereum and purchased $290M Bitcoin on September 3, 2025
- Bitcoin ETFs attracted $332.7M in weekly inflows while Ethereum funds saw outflows
- 87% probability of Fed rate cuts driving institutional Bitcoin demand
- BlackRock’s Bitcoin ETF holds $58B vs $13B in Ethereum fund
- Both crypto prices fell despite the institutional reallocation
BlackRock executed a massive crypto portfolio shift on September 3, liquidating $151 million in Ethereum while adding $290 million in Bitcoin exposure. The world’s largest asset manager’s move signals changing institutional sentiment toward digital assets.
ETF flow data confirmed the reallocation strategy. BlackRock’s iShares Ethereum Trust (ETHA) recorded $151.39 million in outflows while its iShares Bitcoin Trust (IBIT) gained $289.84 million on the same trading day.
Arkham Intelligence blockchain data matched ETF reports exactly. This alignment proves BlackRock actively transferred capital between cryptocurrencies rather than responding to market demand alone.
The September flows reversed strong Ethereum momentum from August. Ethereum ETFs captured $3.87 billion in new investments during August while Bitcoin funds lost $751 million in the same period.
Bitcoin ETFs dominated September inflows with $332.7 million through September 2. Fidelity’s FBTC led with $132.7 million while BlackRock’s IBIT added another $72.8 million before the major September 3 purchase.
Fed Rate Cut Expectations Fuel Bitcoin Rally
Federal Reserve rate cut probability reached 87% for the September meeting. Market analysts link this dovish monetary policy outlook to renewed institutional Bitcoin appetite.
Lower interest rates typically boost demand for risk assets including cryptocurrencies. Bitcoin’s “digital gold” narrative attracts institutional investors seeking inflation hedges when traditional yields decline.
Recent data shows Bitcoin ETFs collected $507.5 million in weekly inflows partly due to Fed easing expectations. Institutional money managers view potential rate cuts as bullish for Bitcoin’s long-term value proposition.
Crypto Prices Drop Despite Positive Flows
Both cryptocurrencies declined following BlackRock’s rebalancing despite positive institutional flows. Bitcoin dropped 2.09% to $109,422 while Ethereum fell 3.29% to $4,306 on September 3.
The price action suggests short-term selling pressure offset positive ETF demand. Market participants may have taken profits following recent gains or reacted to the sudden portfolio shift.
BlackRock’s Bitcoin and Ethereum funds show widening performance gaps. The Bitcoin ETF holds $58 billion in cumulative assets compared to $12.97 billion in the Ethereum fund.
Other Ethereum ETFs posted mixed results. Fidelity’s FETH gained $65.78 million while Bitwise’s ETHW added $20.81 million, but these inflows couldn’t offset BlackRock’s massive outflow.
The reallocation created one of 2025’s largest single-day ETF movements. BlackRock previously purchased $300 million in Ethereum, making the $151 million sale a clear strategy reversal.
Both assets maintain strong yearly performance with Bitcoin up over 90% and Ethereum gaining 77%. However, institutional preference increasingly favors Bitcoin’s established market position.
