On September 3, 2025, BlackRock sold approximately $151 million worth of Ethereum—recorded as a $151.39 million outflow from its iShares Ethereum Trust—and redirected these funds into Bitcoin, purchasing about $290 million worth through its iShares Bitcoin Trust. This large-scale rotation triggered a 3.29% drop in Ethereum’s price, while Bitcoin fell 2.09% on the same day .
Market Impact Analysis:
The move underscores institutional preference shifting from Ethereum to Bitcoin, reinforcing Bitcoin’s position as a perceived macro hedge. Ethereum’s sharper price decline reflects its vulnerability when faced with major outflows.
Such large reallocations can generate short-term selling pressure, leading retail investors to react reactively, although long-term fundamentals remain distinct.
Ethereum ETFs may experience heightened volatility, especially if this sparks further rotation or skepticism about their resilience.
Overall, this action may erode ETH’s short-term sentiment but could open opportunities for rebound if underlying demand and network activity remain strong.
ETH
2,919.57
-5.56%
