As per recent market data and whale movements it is clear that BlackRock has significantly increased its exposure to Bitcoin (BTC) and Ethereum (ETH). According to blockchain intelligence firm Arkham, BlackRock now holds $56.1 billion worth of BTC and $3.5 billion worth of ETH.
The asset manager recently purchased 250 BTC for $24 million and 4,845 ETH for $12.63 million, reflecting continued institutional interest in cryptocurrencies.
This accumulation comes as Bitcoin trades near $96,780, with a 2% price increase, while Ethereum has surged over 3% to approximately $2,670. These purchases indicate growing confidence in digital assets, even as other institutional investors, including Fidelity and Grayscale, have reduced their Bitcoin exposure.
Blackrock and other Institutional Buying Signals Bullish Market Sentiment
This comes as other investors move out of Bitcoin ETFs, although BlackRock hangs on as one of the biggest buyers of the cryptocurrency. Data from Farside Investors shows that while most asset managers have reduced their holdings, BlackRock has recorded consecutive days of positive inflows, highlighting a strategic divergence from its competitors.
Analysts’ views, especially those regarding BlackRock admitting more exposure in the crypto markets indicate that institutional participation could be well underway. The asset manager’s holdings further support the speculations that Bitcoin and Ethereum are gradually becoming real long-term investment instruments.
Bitcoin and Ethereum Exchange Reserves Declining
Currently, analyzing data obtained from the Blockchain can estimate Bitcoin and Ethereum Exchange Reserves that are still decreasing, which means that selling pressure is gradually decreasing. The Bitcoin exchange reserve is at 2.4 million BTC, a decrease from the 3.3 million BTC as of the start of 2022.
Similarly, Ethereum reserves have fallen to 18.8 million ETH, compared to over 30 million ETH in 2022. as more investors move assets off exchanges, indicating long-term holding behavior.
Whales Transfer BTC to Exchanges, Raising Sell-Off Risks
While there is an overall increasing sentiment at institutions in Bitcoin, large BTC transactions hint at a near-term sell signal. On-chain data shows that 630 BTC valued at about $60.43 million was transferred from an unknown wallet to Kraken. Such transactions relate with possibilities of selling as investors take their investments to the exchange markets for trading.
This type of movement is typically interpreted as accumulation by long-term holders, as investors withdraw funds from exchanges to secure them in private wallets. Similarly, 838 BTC worth $80.39m was exchanged from Coinbase to another unknown wallet.
Operations from larger trading accounts to exchanges such as Kraken suggest that some Bitcoin whales intended to sell which in the near-term, could translate to more bearish pressure on the prices.
BlackRock Boosts Bitcoin And Ethereum Holdings to $56.1B BTC, $3.5B ETH
