A $1.26 billion block sale of BlackRock’s iShares Bitcoin Trust (IBIT) this week was likely driven by a large investor seeking a rapid exit from bitcoin exposure, according to crypto investment firm NYDIG.
The transaction on May 26 saw 29.21 million IBIT shares change hands off-exchange at $43.16 per share. The trade was executed at a $1.01 discount to IBIT’s market price of $44.17, a 2.3% concession representing roughly $29.5 million in execution costs.
NYDIG rejected the theory that the block was tied to a bitcoin basis trade. The firm noted the 2.3% discount would have significantly reduced the strategy’s expected returns. They also pointed to CME bitcoin futures activity: only 91 contracts traded during the minute the block was executed, with no unusual spike in volume.
“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 that the transaction represented a contemporaneous basis-trade unwind,” wrote NYDIG’s global head of research, Greg Cipolaro.
The sale comes as U.S. spot bitcoin ETFs face sustained outflows. Total assets in the category fell from $107.75 billion on May 14 to $94.17 billion by May 29. Bitcoin has fallen 16% this year, while equities and commodities have surged as capital exits crypto.