BlackRock to sell 100K of Bitcoin amid Potential huge Bitcoin ETF Outflows to Buy Ethereum and fed rate cuts

It has recently been reported that 10% of BlackRock investors and ETF holders believe that US banks and U.S. bonds across the world will fall due to the rate-cut debate going on between Trump and Jerome Powell. Currently, BlackRock owns 749,944.6 Bitcoin, and BlackRock’s ETFs continue to experience outflow, possibly leading to the biggest crash in Bitcoin prices from $120K to $80K in September if the Fed Rate Cut is delayed again. BlackRock’s Bitcoin sales are primarily driven by ETF investor redemptions, market rebalancing, and strategic portfolio adjustments, such as diversifying into Ethereum. The firm’s role as a custodian means many sales reflect client actions rather than BlackRock’s discretionary decisions. Despite these sales, BlackRock remains a major Bitcoin holder, with IBIT holding approximately 749,944.6 BTC as of August 18, 2025, indicating a strong long-term commitment to the asset. In August, Ethereum Investors and BlackRock portfolio management expect that BlackRock will sell Bitcoin to buy more Ethereum and Solana to rebalance the market. It was recently reported that BlackRock-backed Fidelity has bought the most Ethereum in the past few days, as it is believed that BlackRock’s average Bitcoin buying price is still around $70K but BlackRock is converting its profits and gains into Ethereum. BlackRock’s reported sales of Bitcoin, primarily through its iShares Bitcoin Trust (IBIT), are driven by several factors based on market dynamics and investor behavior, as noted in various sources.

Why BlackRock is investing in Ethereum ETFs, AI Coins, and Solana by Selling Bitcoin?

BlackRock’s ETF institutional investors say, BlackRock’s sales of Bitcoin will shift our focus to other currencies like Ethereum ETFs, Solana, AI coins, and memecoins. It happened the second time that BlackRock sold some profitable Bitcoin to diversify and Strategic shift into Ethereum with Trump’s BSR (Bitcoin Strategic Reserve) or CSR (Crypto Strategic Reserve) regulations and potential coming of a huge Fed Rate Cut in September. In mid-August, BlackRock saw a huge Bitcoin Crash from $124k to $118K with its highest Losses of futures and Perpetual traders. BlackRock is planning to lock or book profit at the current last bought Bitcoins to convert its Bitcoin revenue into Ethereum and other currencies. BlackRock predicts that Ethereum prices could reach $10,000 by the end of October 2025. This aligns with market corrections, such as the 8% price drop reported in July 2025, which triggered $937.9 million in Bitcoin ETF outflows, including $164.4 million from IBIT.  BlackRock’s Bitcoin sales are often a response to outflows from its IBIT ETF, where investors sell their shares, requiring BlackRock to liquidate underlying Bitcoin to meet redemption demands. For example, between May 30 and June 2, 2025, IBIT experienced $561 million in outflows, leading to the transfer of 5,362 BTC to Coinbase Prime. Similarly, in April 2024, IBIT saw $36.9 million in outflows as Bitcoin’s price dropped nearly 20% from its March high of $73,000. These sales reflect investor-driven redemptions rather than BlackRock’s independent strategy.