An anonymous trader’s sale of 29.2 million shares in BlackRock’s iShares Bitcoin Trust ETF (IBIT) on a dark pool sent Bitcoin prices tumbling sharply. Executed on a private trading venue favored by institutions to hide large trades, the $1.3 billion transaction coincided with a sudden 1.5% Bitcoin price drop within just ten minutes.
The trade occurred at 2:30 p.m. UTC and immediately pressured Bitcoin from about $77,875 to roughly $76,720. Over the following 12 hours, Bitcoin’s value declined further to a 24-hour low near $75,600, ending the day down approximately 2.8%. This episode underscores Bitcoin’s increasing integration with traditional financial markets, as institutional Bitcoin ETFs closely track broader market moves.
Industry analysts emphasized the unprecedented scale of the sale. Alex Thorn from Galaxy Digital described it as the largest dark pool Bitcoin ETF trade he has witnessed, while Bloomberg’s Eric Balchunas noted that the 29.2 million IBIT shares sold at $43.16 per share dwarfed the next largest sale by over 22 times. This sizable liquidation adds to ongoing concerns about institutional appetite for Bitcoin exposure.
Bitcoin ETFs in the U.S. have now seen consecutive days of net outflows, with Tuesday recording a total withdrawal of $333.6 million from all funds. IBIT alone experienced an outflow of $192.4 million. Since mid-May, over $2 billion has exited these ETFs, signaling a shift toward reduced institutional holdings amid uncertain market conditions.
Major market players reflect this cautious stance. Jane Street significantly cut its Bitcoin ETF holdings by roughly 70% in the first quarter, while Goldman Sachs trimmed its position by 10%. These moves highlight a broader institutional reevaluation of Bitcoin investment strategies, contributing to increased volatility in both ETF shares and Bitcoin prices.