BlackRock transferred approximately 3,064 Bitcoin (BTC) valued at $276 million and 26,723 Ethereum (ETH) worth $83 million to Coinbase Prime.
The transfers coincide with US spot Bitcoin ETFs recording $486 million in net redemptions Wednesday, the largest single-day outflow since November 20.
BlackRock's IBIT posted $130 million in redemptions during the session.
What Happened
Bitcoin fell below $90,000 Thursday morning, down 3% in 24 hours, triggering over $100 million in long liquidations.
US spot Bitcoin ETFs started January with strong inflows totaling $471 million January 2 and $697 million January 5.
Flows reversed Tuesday with $243 million in outflows, followed by Wednesday's $486 million exodus.
Fidelity's FBTC led Wednesday's redemptions with $247.6 million in outflows.
Ethereum ETFs flipped negative Wednesday, recording $98.3 million in net outflows.
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Why It Matters
The volatility marks a sharp reversal from early January momentum when crypto markets rallied.
Bitcoin ETFs attracted strong 2025 inflows with IBIT alone receiving $24.7 billion.
The transfers to Coinbase Prime represent routine custody operations for institutional ETF management.
Market participants are monitoring whether outflows represent year-end adjustments or sustained institutional retreat.
Fund flows in early 2026 will determine if December's two-month $4.57 billion outflow represents temporary rebalancing or shifting sentiment.
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