BlackRock Signals $270M Bitcoin, Ethereum Sell-Off as $2.4B in Crypto Options Expire

BlackRock, the world’s largest asset manager, looks set to offload Bitcoin and Ethereum following the net daily outflows that the crypto ETFs recorded yesterday. This comes as $2.4 billion in crypto options expire, another development that could trigger market volatility.

BlackRock Moves $270M In BTC, ETH To Coinbase

Arkham data shows that the asset manager deposited 2,563 BTC, worth around $173 million, and 49,852 ETH, worth $97 million, to Coinbase. This signals that the firm is looking to offload these coins, especially following the outflows from its crypto ETFs yesterday.

SoSoValue data shows that BlackRock’s Bitcoin saw $164 million in daily net outflows, accounting for almost all the $165.76 million in net outflows that the BTC ETFs as a group recorded. Meanwhile, the firm’s Ethereum ETF saw $96.80 million in net outflows, also accounting for most of the $130.19 million in outflows that the ETH ETFs recorded yesterday.

This continues the institutional outflows from these crypto ETFs, with the BTC ETFs on course to record their fourth consecutive monthly net outflows, with just over $1 billion flowing out of these funds so far this month. The same also applies to the Ethereum ETFs, with $450 million flowing out from these funds so far this month.

The outflows from BlackRock’s and other crypto ETFs come amid Kevin O’Leary’s statement that institutions are currently cautious due to the quantum computing risks. He noted that these institutions are likely to limit their crypto allocations to 3% due to this quantum concern.

Despite the outflows from the Bitcoin funds, Bloomberg analyst Eric Balchunas recently highlighted how they have outperformed since they launched two years ago. He noted that these funds still have a net inflow of $52 billion in two years, beating their prediction of just $5 to $15 billion inflows in the first year.

$2.4 Billion In Crypto Options Set To Expire

BlackRock’s BTC and ETH deposits come as $2.4 billion in crypto options expire on Deribit today. $2 billion in BTC options are set to expire with the max pain point at $70,000, while $404 million in ETH options are set to expire with the max pain point at $2,050.

CoinGape reported earlier that signs of a BTC, ETH, XRP, and SOL rebound have emerged amid the short liquidations today. There is the possibility that BTC could recover and hit the max pain price of $70,000 today.

It is worth noting that the PCE inflation data, which is due today, is another factor that could impact the crypto market. Based on Wall Street’s estimates, the inflation data could come in hot at 2.9%, which could trigger a sell-off in the market.