BlackRock Bitcoin ETF emerges as firm’s most profitable product line

BlackRock has transferred 1,633 Bitcoin to Coinbase Prime, underscoring the evolving landscape of institutional cryptocurrency management amid a competitive environment for exchange-traded funds (ETFs). This transfer reflects BlackRock's ongoing engagement with digital assets as part of its investment strategy.

Bitcoin's price has dropped to approximately $85,000, marking a 7% decline attributed to rising yields on Japanese government bonds, which have triggered a significant unwinding of the Yen Carry Trade, according to market expert Shanaka Anslem. This follows a brief recovery to around $93,000 last week, highlighting the volatility in the cryptocurrency market.

The Federal Reserve has injected $13.5 billion into the U.S. banking system through overnight repurchase agreements, raising fresh concerns about liquidity and funding stress in the financial markets. This move comes amid ongoing volatility in the cryptocurrency sector, particularly affecting Bitcoin's price dynamics.

Kalshi has launched tokenized event contracts on the Solana blockchain, aiming to attract liquidity from the cryptocurrency community as prediction markets gain traction in the U.S. This integration allows users to engage with event contracts in a decentralized manner, enhancing accessibility and participation.

Huione, a Cambodian lender facing U.S. sanctions and allegations of money laundering, has ceased operations following a significant increase in withdrawal requests, which it attributed to a bank run. This development marks a critical moment for the company amid ongoing scrutiny of its financial practices.

BlackRock's business development director, Cristiano Castro, announced at the Blockchain Conference 2025 in São Paulo that Bitcoin exchange-traded funds (ETFs) have unexpectedly become the largest revenue source for the firm, highlighting the significant role these investment products play in the cryptocurrency market. This development underscores the growing institutional adoption of Bitcoin since the launch of these ETFs.

Ethereum's price has recently stabilized around $3,000 after a significant rebound in the broader cryptocurrency market, gaining 7.22% following a prolonged correction that saw its value drop from $4,700 to as low as $2,900. This recovery coincides with a notable decrease in open interest in Ethereum futures, which fell from $21 billion to approximately $17 billion in late November.

BlackRock reported $2.34 billion in outflows from its iShares Bitcoin Trust (IBIT) in November, which the company described as a normal occurrence given the previous demand that had pushed the ETF close to $100 billion in assets.