A major institutional investor recently carried out a $1.289 billion sale involving shares of BlackRock’s Bitcoin ETF, IBIT, but the market handled the trade with little disruption.
Alex Thorn, Head of Firmwide Research at Galaxy Research, first brought attention to the transaction, which analysts confirm represents one of the largest IBIT trades in history.
Key Points
- A single institution sold 29.21 million IBIT shares worth roughly $1.289 billion on May 26.
- The off-exchange trade used a Rule 611 exemption through the FINRA/NASDAQ TRF Carteret facility.
- IBIT fell to $42.92 and closed the day down 1.47% after the massive block transaction.
- Eric Balchunas said the market absorbed the $1.3 billion IBIT trade with little disruption.
- Bitcoin dropped from $77,875 toward $75,600 before stabilizing above the $75,000 level.
- U.S. spot Bitcoin ETFs recorded $333.7 million in net outflows, with IBIT leading at $192.4 million.
Huge Institutional Sale Hits BlackRock’s Bitcoin ETF
The chart shared by Thorn confirms that a single institutional entity sold 29.21 million IBIT shares at 10:30 AM on May 26, 2026.
Each share sold for $43.16, putting the total value of the trade at about $1.289 billion. The transaction happened off-exchange through the FINRA/NASDAQ TRF Carteret facility rather than through the public market.
The trade also carried a Rule 611 exemption, which allowed it to bypass normal best-execution price requirements. This gave the parties involved more flexibility to complete such a large transaction outside the regular order book.
IBIT Drops Slightly as Market Absorbs the Trade
Despite the size of the transaction, IBIT only saw moderate weakness afterward. Specifically, the ETF dropped to $42.92 at the time of the snapshot. At that point, the fund traded below its three major moving averages and showed a 1-day decline of 1.47%.
The trade also caused a sharp jump in volume. Market watchers believe a large institution, possibly a hedge fund, asset manager, or ETF arbitrage desk, carried out the sale.
The move likely involved an institution quickly reducing, hedging, or exiting a major Bitcoin ETF position through a negotiated deal. However, the identity of the parties involved remains unknown at press time.
The transaction also overshadowed every other trade recorded that day. The next-largest trade involved only about 1.3 million shares, showing just how large the IBIT block was. For context, dark pools often help institutions and large investors move huge positions without heavily affecting the public order book, which helps reduce slippage.
Analysts Say the Market’s Stability Matters Most
The trade triggered reactions from well-known ETF analysts and crypto market commentators. Bloomberg ETF analyst Eric Balchunas highlighted that IBIT’s price stayed relatively stable despite the huge sale, showing that the market absorbed the trade without major problems.
Confirmed.. 29 million share trade ($1.3b) of $IBIT executed at 1030am this morning. This screen shows all the IBIT trades today by size and you can see one of these is not like the others. Price unchanged today so mkt absorbed it well. https://t.co/Otew0DWa3F pic.twitter.com/jZcoKez74K
— Eric Balchunas (@EricBalchunas) May 26, 2026
Meanwhile, crypto analyst Scott Melker (the Wolf of All Streets) said the most important part of the story was how well the market handled the sell-off. He revealed that IBIT still showed around $122 million in redemptions that day, which suggests another buyer absorbed most of the selling pressure.
Responding to Melker, Tom Dunleavy said Bitcoin now trades more like a macro asset than a smaller speculative market.
According to him, investors should expect Bitcoin ETFs to handle trades of this size more often. He compared the situation to someone trading a $20 billion S&P 500 contract, which traditional markets would usually treat as a normal event.
Bitcoin Holds Above Key Levels Despite Pressure
Bitcoin saw increased volatility around the time of the IBIT trade. The asset first traded close to $77,875 before falling to $76,720. Prices later dropped further toward roughly $75,600 as selling pressure grew across the market.
Despite the decline, Bitcoin stayed above the $75,000 level on May 26 while posting a daily loss of 1.86%. The weakness continued into the next trading session, with Bitcoin already down another 1.18% on the day and trading around $74,900.
The broader ETF market also handled the rise in activity fairly well. Total spot Bitcoin ETF trading volume reached $4.4 billion, marking the highest level seen in two months. However, the figure did not break any yearly records.
Earlier this year, the market recorded $4.93 billion in spot Bitcoin ETF volume on March 16. Trading volume also climbed to around $6.5 billion on March 5 and $6.49 billion on March 4. The biggest intraday volume of 2026 remains the $14.7 billion recorded on Feb. 5, showing that the recent $4.4 billion session was large but not unusual for the market.
Bitcoin ETF Outflows Persist
The massive IBIT transaction also came during a period of continued ETF outflows. U.S. spot Bitcoin ETFs have recorded consecutive intraday outflows since May 15, showing ongoing pressure in the sector.
On the day of the trade, U.S. spot Bitcoin ETFs posted around $333.7 million in net outflows. IBIT accounted for the largest share, with roughly $192.4 million in redemptions. However, this was only the largest single-day outflow in just five days. The market has consistently seen worse this year.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
