Massive $1.29 Billion Sale of BlackRock's Bitcoin ETF in Dark Pool

A significant transaction highlights the ongoing trend of outflows from U.S. Bitcoin ETFs.

A staggering $1.29 billion worth of shares in BlackRock’s Bitcoin ETF, known as IBIT, was sold in a dark pool trade on Tuesday. This sale, executed by an unidentified trader, marks the largest of its kind noted by analysts, according to Alex Thorn, head of research at Galaxy.

The massive transaction occurred against a backdrop of significant withdrawals from U.S.-listed spot Bitcoin ETFs, which saw total outflows of $333 million on the same day. Over the past two weeks, withdrawals from these ETFs have reached $2.26 billion, raising concerns about the sustainability of the market.

Dark pool trades allow major investors to buy or sell large quantities of assets without impacting the public market. While this sale indicates a substantial exit from the ETF, it does not necessarily suggest a definitive withdrawal from the fund, as there may have been buyers ready to absorb the volume.

IBIT itself faced net redemptions totaling $192.44 million, indicating a trend of investor exits. The ETF has now experienced seven consecutive days of net outflows, the second-longest streak since its launch in January 2024, totaling $1.88 billion in losses. The longest streak recorded was eight days of outflows, occurring twice in the past.

The price of Bitcoin has also been affected, having dropped below $77,000 from its peak of over $82,000 earlier this month. Analysts speculate that if the current trend of large withdrawals continues, it may lead to further declines in Bitcoin’s value.

“When a single entity sells over $1 billion in one transaction, it often indicates caution about potential risks,” Thorn noted in a post on X.