A $1.3 billion block of shares from BlackRock’s iShares Bitcoin Trust (IBIT) was traded in a dark pool sale Tuesday, marking one of the largest transactions since U.S. spot Bitcoin ETFs launched. While Bitcoin’s price appeared steady on a higher timeframe, it dropped nearly 1.4% during the sell flow. The massive off-exchange trade highlights institutional selling pressure, coinciding with ongoing ETF outflows and declining investor optimism.
A $1.3 billion block of BlackRock’s iShares Bitcoin Trust (IBIT) shares changed hands in a dark pool Tuesday morning. This was one of the largest off-exchange Bitcoin ETF transactions since the products launched 15 months ago.
The sale coincided with U.S. spot Bitcoin ETFs extending their outflow streak, with IBIT facing $192.4 million in net redemptions on Tuesday according to SoSoValue data. Across all spot Bitcoin ETFs, the week’s total net outflows stood at $334 million as of Tuesday.
A dark pool allows a seller to settle a trade with a broker without hitting public order books. This conceals the transaction’s full weight from the open market.
Bitcoin held relatively steady around $76,000 after the trade according to CoinGecko data. However, on a lower timeframe, Bitcoin shed nearly 1.4% from $78,000 toward $77,000 during the sell flow, according to Georgii Verbitskii, derivatives trader and founder of TYMIO.
“The reason the decline was not even deeper is that the market was still able to absorb a substantial amount of supply without a full liquidity breakdown,” he said. Shawn Young, chief analyst at MEXC Research, echoed this view, stating the move was contained because it looked more like a large portfolio adjustment.
Investor sentiment deteriorated alongside the outflows, tanking further into fear territory according to Fear and Greed Index data. Users on prediction market Myriad put a 69% chance on Bitcoin’s next move pushing it to $84,000, down from 79% last Monday.
Though the dark pool transaction kept selling pressure off public books, experts agree it was net negative. “It reflects a large source of demand leaving the market,” Verbitskii said, adding that Bitcoin is showing structural and technical weakness.
Bitcoin has struggled to hold ground since failing to retest $82,000 in early May. Macro headwinds have added pressure, with markets now pricing a 99% chance the Federal Reserve keeps rates unchanged at its June meeting according to data from the FedWatch tool.
