Bitcoin ETF · CME Group · Bitcoin · CoinDesk
A massive $1.26 billion sale of BlackRock’s IBIT was likely a rapid exit by a large investor
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A $1.26 billion block sale of BlackRock’s iShares Bitcoin Trust (IBIT) this week might have been driven by a large investor seeking a rapid exit from bitcoin exposure rather than the unwinding of a common hedge-fund trading strategy.
Key facts
- Total assets across the category fell from $107.75 billion on May 14 to $94.17 billion by May 29
- The transaction took place on May 26, when 29.21 million IBIT shares changed hands off-exchange at $43.16 per share
- A $1.26 billion block sale of BlackRock’s iShares Bitcoin Trust (IBIT) this week might have been driven by a large investor seeking a rapid exit from bitcoin exposure rather than the unwinding
- The size of the trade, the 2.3% execution discount, the absence of corresponding CME futures activity, and the limited universe of potential sellers collectively weigh against the view
Summary
A $1.26 billion block sale of BlackRock’s IBIT shares was likely a rapid exit by a large investor, not an arbitrage unwind, according to NYDIG. The seller of the $1.26 billion IBIT block accepted a 2.3% discount ($29.5 million loss), signaling a priority on speed and certainty over maximizing price. NYDIG rejected the "basis trade" theory, citing the large discount and the lack of an unusual spike in corresponding CME bitcoin futures volume. The transaction took place on May 26, when 29.21 million IBIT shares changed hands off-exchange at $43.16 per share.