BlackRock Sends $2.2B in Crypto to Coinbase: What's Really Happening

No, BlackRock is not rage-quitting crypto. Over the past two weeks, the world's largest asset manager has moved roughly $2.2 billion in Bitcoin and Ethereum to Coinbase Prime across six separate transfers. The numbers are real. The panic is not. These deposits are the mechanical result of ETF redemptions during one of the worst outflow stretches since spot crypto ETFs launched in 2024.

How Much Did BlackRock Actually Move?

On-chain data from Lookonchain shows six deposits from BlackRock-linked wallets to Coinbase Prime between January 22 and February 5, 2026. Combined, they total 20,025 BTC and 238,451 ETH.

The largest single transfer hit on February 2: 6,918 BTC ($538.6 million) and 58,327 ETH ($133.6 million), worth $672.2 million in one batch. That was followed by smaller but still substantial deposits on February 3 (1,134 BTC and 35,358 ETH, totaling $169.33 million) and February 5 (3,900 BTC and 27,197 ETH, totaling $331.68 million).

But the pattern started earlier. On January 22, BlackRock deposited 3,970 BTC ($356.7 million) and 82,813 ETH ($247.1 million) for a combined $603.8 million. Four days later, another 1,815 BTC ($159.4 million) and 15,112 ETH ($43.8 million) followed. Then on January 30, 2,288 BTC ($188.99 million) and 19,644 ETH ($53.72 million) moved over.

All figures are sourced from Lookonchain posts referencing Arkham Intelligence on-chain data. The price of Bitcoin dropped roughly 25% across this window, from around $89,900 on January 22, dipping below $68,000 on February 5. Ethereum fell from roughly $2,980 to under $1,950 over the same period.

Why Is BlackRock Moving Billions to Coinbase?

Because investors are cashing out of its ETFs, and that is how cash-based ETFs work.

BlackRock operates the iShares Bitcoin Trust (IBIT) and iShares Ethereum Trust (ETHA). Both are cash-redemption products. When investors sell shares, BlackRock must liquidate the underlying crypto to convert it into dollars. Coinbase Prime is the custodian and execution platform. Assets move from cold storage to trading accounts for settlement.

Each major transfer lines up with a spike in ETF outflows. The week of January 26 to 30 was brutal. Spot Bitcoin ETFs bled $1.49 billion in net outflows, with IBIT alone accounting for $947.2 million. Ethereum ETFs lost $327 million, with ETHA responsible for $264 million. January 30 was the worst single day, when IBIT posted a $528.3 million outflow, its biggest of 2026.

The pattern continued into February. After a brief $561.8 million inflow day on February 2, outflows resumed. February 3 saw $272 million leave BTC ETFs. February 4 brought $545 million in outflows, with IBIT contributing $373 million and ETH ETFs losing another $79.5 million.

These are not boardroom decisions to dump crypto. They are settlement mechanics.

How Bad Is the Bigger Picture?

From November 2025 through early February 2026, the entire spot Bitcoin ETF complex has shed roughly $6.18 billion in net capital. That is the longest sustained outflow streak since these products launched. Total BTC ETF net assets have dropped from over $125 billion in mid-January to around $93.5 billion. Ethereum ETF assets fell from $18 billion to roughly $16.75 billion.

Bitcoin itself is down about 40% from its October all-time high, now trading below $68,000. The selloff has been driven by a mix of hawkish Federal Reserve expectations, a slump in U.S. tech stocks, and leveraged liquidations exceeding $1.75 billion. Even gold, which briefly spiked near $5,600 earlier in the week, has pulled back sharply below $4,900 as broad deleveraging spread across asset classes.

IBIT still holds approximately $56 billion in net assets with cumulative lifetime inflows of around $61.8 billion. It remains the dominant spot Bitcoin ETF by a wide margin. BlackRock has not signaled any intention to reduce its crypto exposure.

What Does This Mean for the Market?

When billions in ETF redemptions convert to spot sales on Coinbase, the effect is real selling pressure. It adds supply into a falling market and can accelerate declines, especially when leveraged positions are already getting liquidated.

But this is also how traditional finance works. The same pipeline that processed $2.2 billion in sales over two weeks has processed tens of billions in purchases over the past two years. When sentiment shifts, the flow reverses. On February 2, investors poured $561.8 million back into Bitcoin ETFs in a single session, proving the infrastructure works both ways.

The real takeaway is not that BlackRock moved $2.2 billion to Coinbase. It is that crypto markets now operate on institutional plumbing, and that plumbing handles redemptions the same way it handles accumulation. The outflows are significant. The mechanics behind them are routine.

Sources:

• Lookonchain (@lookonchain) — On-chain analytics tracking all six BlackRock wallet transfers to Coinbase Prime, referencing Arkham Intelligence data
• CoinDesk — Reporting on the Jan 30 near-$1 billion single-day ETF outflow and synchronized institutional selling
• OurCryptoTalk — Weekly breakdown of Jan 26-30 ETF outflows including IBIT and ETHA fund-level data
• The Block — Feb 2 inflow snap coverage and ETF flow tracking via SoSoValue data
• KuCoin News — Feb 3 daily ETF flow breakdown by fund
• Crypto Economy — Feb 4 outflow data including IBIT $373M withdrawal and cumulative totals
• Investing.com — Macro analysis of $6.18B cumulative outflows since November 2025