NYDIG Says Large Investor Sold $1.26 Billion of BlackRock’s IBIT in Off-Exchange Block Sale

A $1.26 billion block sale of BlackRock’s iShares Bitcoin Trust (IBIT) on May 26 involved 29.21 million IBIT shares changing hands off-exchange at $43.16 per share, according to an analysis published by NYDIG.

NYDIG said the trade was executed at a $1.01 discount to IBIT’s market price of $44.17 at the time, representing a 2.3% concession and roughly $29.5 million in execution costs.

@coindesk

NYDIG described the sale as likely driven by a large investor seeking a rapid exit from bitcoin exposure rather than the unwinding of a common hedge-fund trading strategy.

The analysis said the trade was reported through the FINRA/Nasdaq TRF Carteret facility, which is commonly used for privately negotiated off-exchange transactions.

NYDIG said the IBIT position represented exposure equivalent to roughly 3,700 CME bitcoin futures contracts, while only 91 contracts traded during the minute the block was executed.

NYDIG rejected a basis-trade explanation, arguing that the size of the discount would have significantly reduced the strategy’s expected returns.

NYDIG’s global head of research, Greg Cipolaro, wrote that "The size of the trade, the 2.3% execution discount, the absence of corresponding CME futures activity" weighed against the view that the transaction was a contemporaneous basis-trade unwind.

The Legal Advocate

The analysis also pointed to activity in CME bitcoin futures, saying there was no unusual spike in futures volume during the minute the block was executed.

CoinDesk reported that the sale came as U.S. spot bitcoin ETFs saw sustained outflows, with SoSoValue data showing daily net outflows on every trading day from May 15 through May 29.

NYDIG said ETF flow data cannot be used to directly identify the seller or link specific redemptions to the block transaction, and it noted the position exceeded the reported holdings of every disclosed IBIT investor in recent 13F filings.

CoinDesk said total assets across the U.S. spot bitcoin ETF category fell from $107.75 billion on May 14 to $94.17 billion by May 29.

“Los Angeles County Fire Department Engine 129 responded to a motor vehicle accident with at least one critical patient early May 31, requesting a helicopter for medical evacuation”

The Legal Advocate

The analysis said the bitcoin price fell 16% this year while most other assets, such as equities and commodities, have surged as capital continues to flow out of crypto.

NYDIG said public data cannot determine whether the sale was driven by investor redemptions, risk-management constraints or a discretionary decision to reduce bitcoin exposure.

Still, NYDIG said the transaction stands out because a large holder chose to accept a significant discount to exit a bitcoin-linked position worth more than $1 billion during a period of persistent outflows.

CoinDesk also noted that the sale occurred while the price of bitcoin remains below $80,000, framing the exit as happening under ongoing pressure in the spot ETF market.