In 2025, BlackRock significantly increased its investments in Ethereum while reducing its Bitcoin holdings, reflecting a strategic shift in the company's crypto investment focus.
Change in BlackRock's Crypto Assets
According to Arkham data, at the beginning of 2025, BlackRock held 552,550 BTC worth approximately $51.16 billion and 1.07 million ETH valued at $3.59 billion. By September 3, 2025, BTC assets rose to 747,469 (about $82.92 billion), while ETH grew to 3.77 million (roughly $16.65 billion). This represents a 35.3% increase in BTC and a 252.3% increase in ETH. The figures indicate that BlackRock is accumulating Ethereum 7.15 times faster than Bitcoin, highlighting a strategic shift.
ETF Flows: A Return to Bitcoin
The crypto ETF market showed significant changes in early September. On September 2, Ethereum-based ETFs experienced $135 million in outflows, while Bitcoin ETFs attracted $332.7 million in inflows. By September 3, BlackRock's ETH ETF (ticker ETHA) reported a net outflow of $151.39 million, while its new Bitcoin ETF (ticker IBIT) gained $289.84 million. This means BlackRock shifted $440 million in assets from ETH to BTC within a day, confirming an active rebalancing process.
Impact of Fed Rate Cut Expectations on Bitcoin Demand
The shift towards Bitcoin coincides with growing expectations for Federal Reserve monetary easing. There is now approximately an 87% probability of a rate cut at the September meeting. Analysts believe this dovish stance is boosting demand for riskier assets, including cryptocurrencies. The Bitcoin ETF market recorded $507.5 million in inflows recently, partially driven by expectations of a Fed rate cut.
BlackRock's increase in investments in Ethereum and reallocation towards Bitcoin indicate a changing strategy that could significantly influence the cryptocurrency market moving forward.
