BlackRock customers reportedly sold $146.1 million worth of Ethereum. According to data shared by Whale Insider and blockchain analysis platform Arkham Intelligence. This move is attracting attention across the virtual currency market. This comes as Bitcoin receives increased institutional attention and sentiment shifts around Ethereum’s near-term performance. Meanwhile, inflows into Bitcoin exchange-traded funds (ETFs) continue. This large-scale sale of Ethereum by BlackRock customers signals potential caution or rebalancing by institutional investors.
Just in: BlackRock customers sell $146.1 million worth of $ETH. pic.twitter.com/qUch4eXqqT
— Whale Insider (@WhaleInsider) October 18, 2025
Institutional investors reduce Ethereum exposure
The transactions tracked by Arkham suggest that several large Ethereum leaks were linked to BlackRock’s institutional customers. Although the exact reason is unknown. Analysts believe the move could be part of a broader portfolio adjustment following Bitcoin’s recent rally and market dominance. Over the past few months, Ethereum’s performance has lagged compared to Bitcoin. Meanwhile, Bitcoin continues to attract strong demand from institutional investors through ETFs such as BlackRock iShares Bitcoin Trust (IBIT).
Ethereum’s upcoming spot ETF filing has yet to spark similar enthusiasm. This $146 million liquidation may reflect investors’ preference for holding Bitcoin over Ethereum during times of market uncertainty. Institutional investors often rotate capital between major crypto assets based on risk appetite, price trends, and macroeconomic factors.
Bitcoin still dominates BlackRock’s crypto exposure
Despite Ethereum’s decline, BlackRock’s Bitcoin holdings remain substantial. Data from Arkham shows multiple wallet transactions linked to the BlackRock IBIT Bitcoin ETF. They each move around 300 BTC, which works out to around $32 million per transaction. These transfers took place within the last 6 hours. This highlights BlackRock’s continued involvement in the Bitcoin market.
In total, the company’s total exposure to Bitcoin now exceeds $100 billion. This strengthens our position as one of the largest institutional holders of digital assets. In contrast, Ethereum makes up a much smaller portion of asset managers’ crypto exposure. This difference reflects broader institutional trends. Currently, most regulated investment vehicles and ETFs revolve around Bitcoin rather than Ethereum or other altcoins.
Changes in market sentiment surrounding Ethereum
Ethereum’s recent market performance has been under pressure due to several factors. These include delays in ETF approval, high network fees, and competition from emerging layer 2 chains. Investors are also considering Ethereum’s transition to proof-of-stake and the evolution of its monetary policy. Some analysts argue that reducing Ethereum’s issuance could make it more attractive in the long run.
Others see the lack of strong institutional momentum as a short-term weakness. Still, Ethereum remains the second-largest cryptocurrency by market capitalization. It is also the core of DeFi. The recent decline by BlackRock clients may not be indicative of a long-term bearish trend. But rather, it is a short-term reallocation of Bitcoin to a stronger institutional narrative.
Outlook: Bitcoin’s momentum continues
Large investors seem comfortable concentrating their exposure on Bitcoin as it continues to outperform. Especially given the regulatory clarity surrounding Bitcoin ETFs. Ethereum, on the other hand, may need additional catalysts. Such as the approval of spot ETH ETFs and significant growth in DeFi to regain support from institutional investors. Currently, BlackRock’s client activity highlights a simple truth about the market. Even among the big players, crypto allocations remain in flux and sentiment can change quickly.
