Cryptocurrency

Bitcoin News: BlackRock Just Moved $262 Million in Bitcoin to Coinbase. Is More Selling Coming?

A massive crypto transfer from BlackRock's ETF wallets to Coinbase Prime set off alarm bells across crypto markets, but the real question is whether on-chain traders are misreading the signal entirely.

By Sam Daodu
Published October 23, 2026, 12:16pm ET · 4 min read

The Crypto Desk desk. Editor: Sam Daodu.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

A golden Bitcoin coin featuring the 'B' symbol at its center and radiating digital circuit lines. The coin is prominently illuminated by a bright, ethereal glow and surrounded by concentric light rings and shimmering particles, all set against a dark, black background with subtle bright light flares.
A gleaming Bitcoin symbol captures the essence of digital currency as major institutional movements, such as BlackRock's recent transfer, influence market sentiment. © bitz100 / Shutterstock.com

Wallets tied to BlackRock’s (NYSE: BLK) spot ETFs moved 3,215 BTC, valued at $262.4 million, to Coinbase Prime, according to on-chain records from October 23, 2026. Coinbase Prime, Coinbase’s institutional trading desk (NASDAQ: COIN), also received another 38,882 ETH, worth $93.2 million, from those wallets. This brings the total transfer to about $355.6 million in just two hours.

The timing is concerning. On October 22, spot Bitcoin ETFs faced $635.6 million in net outflows, and Bitcoin (CRYPTO: BTC) dropped by 3.3% to $81,429. Crypto enthusiasts often interpret such large transfers to exchanges as a sign of significant selling ahead.

However, despite these transfers, Bitcoin trades at $81,858 as of October 23, up 0.3% over the past 24 hours, while Ethereum (CRYPTO: ETH) remains nearly unchanged near $2,408. This raises the question: does this transfer signal a fresh wave of selling, or is it just a paper trail for sales that already occurred?

What BlackRock’s $262 Million Coinbase Transfer Reveals

Bitcoin Cryptocurrency is Digital payment money, Gold coins with B letter symbol electronic circuit on EURO EYP20 bill.Cryptocurrency can uses designed,Business Finance and Investment Risk Ideas

smolaw / Shutterstock.com

An on-chain transfer represents the movement of coins between two wallets, publicly recorded on the blockchain. Analytics firms label these wallets to help readers identify where the coins came from and where they’re going. A common trading principle is that when coins flow onto an exchange, traders can sell them, which can read as bearish. Conversely, coins moving off exchanges suggest long-term holding.

Coinbase Prime acts as a prime broker, holding, trading, and settling assets for major institutions through a single account. Because Coinbase is BlackRock’s primary custody and trading partner for its crypto funds, BlackRock moves coins between Coinbase-run wallets as standard fund-management practice.

Interestingly, this transfer aligns closely with an outflow from one of BlackRock’s funds. The $262.4 million in Bitcoin moved corresponds to the $254.1 million that exited the iShares Bitcoin Trust (NASDAQ: IBIT) on October 22, according to SoSoValue.

Why the Coinbase Prime Transfer Is Less Alarming Than It Looks

Close-up of hand using stylus on stock market chart on tablet. Ideal for stock trading, investment analysis, financial planning, and business growth concepts.

khunkornStudio / Shutterstock.com

Most iShares Bitcoin Trust trades do not directly move Bitcoin. When an investor sells IBIT shares on the stock market, another investor buys them, and the fund’s coins remain intact. Coins transfer only when an Authorized Participant, such as a large bank or trading firm, redeems shares with the fund.

BlackRock’s iShares prospectus explains this clearly. In a redemption scenario, “an Authorized Participant deposits Creation Units with a Fund and receives from the Fund a redemption basket,” which can consist of assets or “a specified amount of cash.”

In a cash redemption, the fund sells Bitcoin to raise money through its prime broker, while in an in-kind redemption, the Authorized Participant receives the actual Bitcoin and may choose to hold, hedge, or sell them. In both instances, this recent transfer settles orders investors placed on October 22, already reflected in the published flow numbers. A trader interpreting the wallet movement as new selling could mistakenly count the same $254.1 million twice.

The Ethereum transfer follows the same logic, indicating redemptions from BlackRock’s Ethereum ETF, which is managed through the same account. Furthermore, the outflows are not solely attributable to BlackRock. The Fidelity Wise Origin Bitcoin Fund witnessed $217.5 million in outflows, the ARK 21Shares Bitcoin ETF had $109.4 million, and Grayscale’s and Bitwise’s funds saw outflows of $29.5 million and $27.4 million, respectively. However, BlackRock’s movements drew more attention because of greater scrutiny.

What Could Change the Direction of Bitcoin’s ETF Flows

A light wooden box is partially open, revealing golden coins with a Bitcoin symbol and the wooden letters 'ETF'. Several Bitcoin coins are also stacked outside the box. In the blurred background, a digital financial chart with red and green candlesticks and blue lines is visible, indicating market activity.

K.unshu / Shutterstock.com

Bitcoin’s price is closely linked with ETF flows, and October 22 marked a break in buying momentum. The funds had previously attracted $1.08 billion over the three preceding sessions, so after October 22’s outflow, they still brought in a net $442.7 million from October 19 to 22.

IBIT’s activity fueled much of this, drawing in $665.2 million on October 19 and $235 million on October 21. Overall, total net inflows across all spot Bitcoin ETFs stood at $57.32 billion as of October 22.

The funds have experienced other days of outflows this month that did not lead to a downward trend. On October 7, they posted $487.1 million in outflows, and on October 14, $261.5 million, but inflows followed both instances.

Bitcoin’s price has followed a similar pattern, down 0.3% over the past week, 3.7% over the month, and 7.2% year to date. Nevertheless, it remains up 26.3% over the past 90 days, suggesting buyers have maintained a rebound from summer lows. As of the morning of October 23, flow data had not yet been published, which could provide investors with clearer insights than any wallet alert.

Is More Bitcoin Selling Coming After BlackRock’s Transfer?

The transfer to Coinbase Prime appears to record transactions that have already occurred, closely matching the size of redemptions reported on October 22. This transfer alone does not suggest more sellers are queuing up, implying significant additional selling may not be on the horizon yet.

Two checks could change that view. Another outflow near October 22’s $635.6 million, or outflows that wipe out the $442.7 million net inflow from October 19 to 22, would point to wider selling. On price, a close below $81,429 would suggest buyers cannot absorb the redemptions, while a move above $84,378, its September 23 level, would show buyers back in control.

Contact [email protected] for any questions or corrections.

1INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org).2The probability of a member receiving $1,000 is 0.028%. If you don’t make a selection in 45 days, you’ll no longer qualify for the promo. Members must fund their account with a minimum of $50.00 to qualify. The probability percentage is subject to decrease. Members are only eligible for the Stock Award promotion upon opening their first brokerage account; subsequent cash brokerage accounts are ineligible for the promo, including for members with multiple accounts.

3Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees.

4There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batched order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event.
Sam Daodu

Sam Daodu is a crypto analyst who's spent nearly a decade making blockchain understandable—no easy task when most whitepapers read like fever dreams. He writes for 24/7 Wall St., covering Bitcoin, altcoins, and crypto market analysis for investors. Before crypto, he was a tech writer (back when explaining "the cloud" was peak innovation). Since 2018, he's written for CoinTelegraph, Yahoo Finance, The Block, Cryptonews, Zypto, Rain, and more—basically anywhere people want crypto news without the headache. Sam runs MacLabs Marketing, a content agency for crypto brands tired of sounding like AI wrote their website. He also publishes free crypto education on his site for Web3 enthusiasts who think "gas fees" is a typo. When he's not writing or staring at charts, Sam's either: - Watching anime (currently convinced One Piece has better tokenomics than most altcoins) - At the gym sculpting himself into a Greek god - Listening to the music your mum warned you only bad boys listen to Connect: LinkedIn | Email | MacLabs Marketing

All articles →