BlackRock moved $214M in crypto to Coinbase Prime at year-end as ETFs see redemptions, while Michael Saylor’s Strategy doubled down on Bitcoin
As retail investors relaxed over the holidays, two big institutional stories quietly played out on-chain — and they paint opposite strategies for gaining Bitcoin exposure.
BlackRock transfers crypto to Coinbase Prime
Blockchain sleuthing firm Arkham reported that BlackRock shifted roughly $214 million worth of Bitcoin (BTC) and Ethereum (ETH) to Coinbase Prime in a series of year-end transfers. The timing is notable: BlackRock’s spot crypto ETFs — IBIT (Bitcoin) and ETHA (Ethereum) — have been experiencing falling investor interest, and the on-chain activity looks like active liquidity management to handle redemptions rather than passive custody.
ETF outflows concentrated at month-end
The flows are concentrated late in December. Since Dec. 18, IBIT faced steady outflows, including $7.9 million on Dec. 29 alone; all U.S. spot Bitcoin ETFs pulled $19.3 million that same day. Ethereum ETFs saw pressure too: BlackRock’s ETHA lost $13.3 million on Dec. 29, nearly twice the net outflow for all Ethereum ETFs that day. Analysts point to year-end tax-loss harvesting and profit-taking after a choppy Q4 as likely drivers of these withdrawals.
Strategy buys into weakness
On the flip side, Michael Saylor’s company — now called Strategy (formerly MicroStrategy) — bought into the sell-off. Lookonchain data shows Strategy purchased 1,229 BTC for about $108.85 million on Dec. 29, paying an average of $88,568 per coin. That lift brings its reported stash to roughly 672,497 BTC, with an estimated unrealized profit near $8.31 billion (about a 16% gain overall).
Liquidity provider vs. liquidity sink
The juxtaposition is striking: BlackRock appears to be acting as a liquidity provider by moving BTC and ETH onto exchange rails to let ETF investors exit, while Strategy is acting as a liquidity sink — buying and holding long-term and taking supply off the market. Yet spot prices barely budged: at press time Bitcoin traded near $87,900 (up ~0.24% 24h) and Ether around $2,974 (up ~0.45% 24h). That muted price reaction suggests these year-end flows were largely anticipated by the market.
What to watch next
With year-end withdrawals largely processed, attention will shift to January sentiment. Will large buys like Strategy’s draw retail back in, or will conservative institutional positioning keep pressure on flows? On-chain signals indicate weaker hands are exiting, while major players are subtly repositioning ahead of the next market cycle — traders should watch ETF flows and exchange balances closely in the coming weeks.
Disclaimer: This article is informational and not investment advice. Cryptocurrency trading is high-risk; do your own research before making financial decisions. © 2025 AMBCrypto
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