BlackRock divests more than $350 million worth of a specific cryptocurrency within a week

In the crypto market, Ethereum has been making headlines recently due to its impressive performance. The second-largest cryptocurrency by market cap has seen significant outflows and inflows over the past week, with a notable event occurring on August 20, when $257.8 million in redemptions were recorded.

Despite this outsized outflow, Ethereum saw a quick rebound. On August 21, BlackRock's Ethereum ETF (ETHA) attracted $233.6 million in inflows, followed by an additional $109.4 million on August 22. This indicates a strong buying pressure despite the initial sell-off.

The price surge can be attributed to renewed institutional interest and optimism surrounding ETF demand. Ethereum's price outpaced Bitcoin during this period, reaching new highs. By press time, Ethereum was trading at $4,713.

The alignment of short-term and long-term averages, such as the 50-day simple moving average of $3,674 and 200-day SMA of $2,679, confirms sustained bullish momentum for Ethereum. However, the 14-day relative strength index stands at 66.66, edging closer to the overbought threshold of 70, suggesting that a short-term pullback could emerge.

Over the past two months, Ethereum's price has more than doubled. Across all issuers, Ethereum spot ETFs recorded net weekly outflows of $233.7 million, with BlackRock's activity accounting for more than 85% of total redemptions during the sell-off days.

It's important to note that no publicly available information identifies who conducted the largest Ethereum sales related to BlackRock between August 18 and 22, 2021. However, BlackRock is mentioned as a significant institutional driver in Ethereum asset tokenization, indicating that the institution could play a crucial role in the future of Ethereum trading.

The broad crypto market surge was also influenced by Federal Reserve Chair Jerome Powell's signal of the possibility of an interest rate cut. This move has been seen as favourable for the crypto market, contributing to the overall market rally.

In the past 24 hours, Ethereum has gained 8.5%, and nearly 6% higher on the week. As the crypto market continues to evolve, Ethereum's performance serves as a testament to the growing interest and confidence in digital assets among investors.

BlackRock divests more than $350 million worth of a specific cryptocurrency within a week