A $1.26 billion block trade of BlackRock’s iShares Bitcoin Trust shares last week is believed to be a directional whale exiting a position. NYDIG research head Greg Cipolaro noted the seller accepted a $29.5 million discount for immediate execution on a dark pool, indicating urgency. U.S. Bitcoin ETFs have seen 11 consecutive days of net outflows totaling over $2.9 billion, while broader market sentiment remains fearful.
An unknown trader sold 29.2 million shares of BlackRock’s iShares Bitcoin Trust (IBIT) for $1.26 billion on a private dark pool last week. NYDIG Head of Research Greg Cipolaro stated several indicators point to a large directional holder exiting a concentrated position.
The seller accepted a price of $1.01 below the market rate, foregoing $29.5 million for immediate execution. Cipolaro said the transaction details demonstrate a sophisticated holder willing to pay a substantial premium for immediacy.
“The key unanswered question is whether the seller was responding to idiosyncratic constraints or expressing a broader investment view,” Cipolaro said. Bitcoin’s price slid 2.8% over the day following the massive trade.
U.S.-listed Bitcoin ETFs have now recorded 11 straight trading days of net outflows. Data from Farside Investors shows a $333.6 million outflow occurred on the same day as the block trade.
More than $2.9 billion has flowed out from the ETFs since May 14, the last recorded net inflow. Market sentiment has also been volatile, with the Crypto Fear & Greed Index returning a “fear” score of 29 on Monday.
Cipolaro speculated the sale could have been forced by investor redemptions or a deliberate risk reduction move. “Public data cannot distinguish conclusively between these explanations,” he noted.
“However, the weakening technical backdrop, ongoing ETF outflows, and willingness to pay a substantial execution premium for immediacy are more consistent with discretionary liquidation rather than investor redemptions or a portfolio rebalance.” The motive behind the urgent $1.26 billion sale remains unclear.
