BlackRock ETH Outflow Hits $257M, Ethereum Price Slides Below $4.1K

Ethereum slipped below the $4,100 mark on Thursday after significant outflows from BlackRock’s exchange-traded fund (ETF). Data showed the world’s largest asset manager recorded nearly $257 million in ETH redemptions, its second-largest outflow to date. The selloff came alongside a $220 million Bitcoin outflow from BlackRock’s iShares Bitcoin Trust. While investors initially speculated that BlackRock itself was reducing exposure, market analysts clarified that the transactions reflected routine redemptions. As ETF holders exited, the fund had to offload assets to meet demand. Despite this adjustment, BlackRock still holds roughly 741,000 Bitcoin. This underscores its continued heavy involvement in crypto markets.

Outflow Sparks Market Reaction

Ethereum’s decline mirrored the scale of the outflow. Traders quickly linked the drop to BlackRock’s liquidation of ETH holdings. The correlation raised concerns that institutional movements may drive near-term volatility. Cas Abbé, a market analyst, highlighted the significance of the selloff. “This was BlackRock’s second-largest ETH outflow ever,” he wrote. “It explains the dip below $4,100.” Yet Abbé also pointed to history. The last time BlackRock faced such a large withdrawal, Ethereum rebounded by 30% within a week. That precedent has sparked debate. Some see the current downturn as an entry point for opportunistic buyers. Others warn that macroeconomic conditions differ today, making a repeat performance less certain.

Routine Management or Warning Signal?

Crypto Patel, another well-known analyst, urged investors not to overinterpret the event. He explained that ETFs are structured to honor client exits, meaning asset managers adjust holdings as money flows in and out. “BlackRock isn’t selling personally,” he noted. “They’re simply managing redemptions.” Still, the size of the outflow reflects growing caution in digital asset markets. Investors have been sensitive to regulatory developments, inflation trends, and shifting risk appetite across financial markets. For Ethereum, which has enjoyed a strong rally this year. The latest setback highlights how institutional flows now heavily shape its trajectory.

Market Watching for Next Move

The question now is whether Ethereum can recover quickly as it did during the last large-scale outflow. Some traders believe a relief rally is possible if sentiment stabilizes. Others think persistent selling pressure could keep ETH under the $4,100 level in the near term. Currently, the market is left watching BlackRock’s next moves. Its inflows and outflows have become a barometer for wider institutional confidence in digital assets. Ethereum’s response in the coming days may reveal whether this pullback is temporary or the start of deeper weakness.