Coinbase Sees Major Institutional Transfers as Crypto ETF Outflows Deepen

As 2025 draws to a close, the cryptocurrency market is grappling with significant institutional selling pressure, with Coinbase at the center of recent large-scale liquidation moves. BlackRock's transfer of over $200 million in Bitcoin and $29 million in Ethereum to the exchange for likely disposal highlights the persistent outflows from crypto ETFs, casting a shadow over hopes for a year-end rally. This development underscores the complex dynamics between traditional finance institutions and digital asset markets during periods of market stress.

Bitcoin and Ethereum Face Renewed Selling Pressure as ETF Outflows Persist

Bitcoin and ethereum prices extended losses as institutional selling via crypto ETFs overshadowed hopes for a year-end rally. BlackRock moved over $200 million in BTC and $29 million in ETH to Coinbase for likely liquidation—its second major disposition this week.

The market reflects deepening bearish sentiment, with Bitcoin ETFs bleeding $330 million in weekly outflows and Ethereum products shedding $11 million. This follows last week's $460 million BTC and $555 million ETH fund withdrawals—a clear signal of waning institutional appetite.

Arkham Intelligence data reveals a pattern of strategic divestment. Beyond yesterday's transfer, BlackRock offloaded $255 million in Bitcoin and $91 million in Ethereum just three days prior through the same exchange channel. Such coordinated moves suggest a recalibration of traditional finance's crypto exposure rather than panic selling.

Coinbase Support Agent Arrested in India Following Data Breach Probe

Hyderabad police confirmed the arrest of an ex-Coinbase support agent involved in a scheme where hackers bribed customer service staff to steal sensitive user data. The breach, which began in May, exposed customer accounts for months and triggered a $20 million ransom demand, with total fallout estimated at $400 million.

According to Coinbase Chief Security Officer Philip Martin, attackers targeted contractors and employees in India associated with the company's outsourcing operations. The hackers bypassed technical safeguards by simply paying insiders for access—a growing threat vector in cryptocurrency security.

Coinbase maintains that compromised access was quickly revoked upon discovery. CEO Brian Armstrong publicly acknowledged the arrest on social media platform X, underscoring the exchange's response to the incident.