🏩 BlackRock’s $270M Crypto Move Sparks Market Jitters Ahead of Options Expiry

BlackRock, the world’s largest asset manager, has sent shockwaves through the crypto market after depositing $270 million worth of Bitcoin and Ethereum into Coinbase a move widely interpreted as preparation for a potential sell-off.

Blockchain data shows BlackRock transferred 2,563 BTC (≈$173M) and 49,852 ETH (≈$97M) to the exchange. The timing is notable: the transfers followed heavy outflows from BlackRock’s crypto ETFs, which accounted for the majority of daily ETF withdrawals across the market.

Bitcoin ETFs recorded nearly $166 million in net outflows, with BlackRock alone responsible for $164 million. Ethereum ETFs weren’t spared either, seeing $130 million exit, most of it from BlackRock’s fund. February is shaping up to be another negative month for institutional crypto flows, with over $1 billion exiting BTC ETFs and $450 million leaving ETH ETFs so far.

Adding to the tension, $2.4 billion in crypto options are set to expire today. Bitcoin options worth $2 billion carry a max pain level near $70,000, while $404 million in ETH options cluster around $2,050 levels that could attract sharp price action.

Institutional caution remains high. Investor Kevin O’Leary recently noted that concerns around quantum computing risks are pushing institutions to cap crypto exposure at around 3%, limiting aggressive capital deployment.

Still, the bigger picture isn’t entirely bearish. Bloomberg analyst Eric Balchunas pointed out that despite recent outflows, Bitcoin ETFs have amassed $52 billion in net inflows since launch far exceeding early expectations.

With options expiry, ETF flows, and U.S. inflation (PCE) data all converging, the crypto market may be heading into a high-volatility window where sharp moves, in either direction, should not come as a surprise.

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