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Speculation over BlackRock potentially offloading $429 million worth of Bitcoin has created a storm in the crypto world. Lately, rumors have grown on social media channels, mostly X (formerly Twitter), and crypto circles. The excitement is attributed to a recent blockchain transaction involving 4,113 BTC worth around $429.4 million.
This amount was transferred to the Coinbase Prime platform, which institutional players widely use for trading and custodial services.
What prompted the hysteria was speculation that the BTC move was linked to wallets under BlackRock’s iShares Bitcoin Trust (IBIT). However, BlackRock uses Coinbase as its main custodian, the connection was a plausible one.
Since Coinbase Prime is often where institutional-sized trades are settled, market observers were quick to speculate that the move was a sign of an imminent major sell-off.
Nonetheless, in spite of the magnitude of the transfer, the price of Bitcoin has remained steady, with no notable volatility or change in liquidity witnessed. As per Arkham Intelligence data, BlackRock’s holdings remain steadfast at about 664,954.7 BTC, corroborating the recent figures reported in ETF filings. Further, there has been no record of redemptions or sales in regulatory filings.
Coincidentally, IBIT’s rolling 90-day volatility is currently at its lowest point. This is considered a strategic plus in terms of being able to draw in bigger investors who want stable, predictable exposure to Bitcoin, rather than risky swings.
If there had been a big sell-off, one would anticipate a significant effect on this figure, yet none has appeared.
Since BlackRock habitually transfers assets within its custodial framework, the recent transfer to Coinbase Prime might well be business as usual. Such internal transfers are not uncommon and may not indicate a liquidation event. Without an official pronouncement, rumors have been filling the vacuum.
All evidence at this time indicates that no sale has occurred. The transfer is indeed verifiable and real on-chain, but in the absence of proof of sell order, official filing, or price shock, the market is only left with hearsay and not facts. BlackRock has made no statements indicating it has sold any of its Bitcoin assets.
While the $429 million BTC transaction undoubtedly made waves, there is as yet no solid proof that BlackRock has offloaded its positions. At this point, it seems to be merely another instance of crypto speculation getting ahead of confirmed reality.
