A single institutional investor executed the largest off-exchange trade ever recorded in US spot Bitcoin ETFs by offloading a $1.26 billion stake in BlackRock’s iShares Bitcoin Trust (IBIT). The sale came at a steep cost, with the seller accepting a 2.3% discount from market price, resulting in close to $30 million in execution losses. This transaction was not typical arbitrage but a deliberate, urgent exit before the broader crypto market fell.
The trade occurred at precisely 10:30 a.m. Eastern Time during a surge in IBIT’s share price and volume. Earlier that morning, the ETF’s price had moved from $43.81 to an intraday peak of $44.24. Volume surged to three or four times normal, suggesting the broker was probing liquidity and preparing the market for a large transaction. Then, the whale sold 29.21 million shares in a privately negotiated, off-exchange block at $43.16—a significantly lower price than the $44.17 spot at that moment.
Regulatory data reveals the seller prioritized speed over price. The trade was reported through FINRA/Nasdaq TRF Carteret, a venue for dark pool and private deals, and classified as an Intermarket Sweep Order with a Reg NMS trade-through exemption. These designations permit bypassing the obligation to seek the best public price, allowing the seller to secure a fast, guaranteed exit despite incurring a discount.
Market speculation often attributes such large crypto ETF trades to basis trading—hedge funds simultaneously buying the ETF while shorting futures to capture yield from price spreads. However, analysis by NYDIG challenges this notion for this trade. Three key reasons undermine the basis unwind explanation: the immediate significant loss inflicted on the spot leg contrasts with the gradual yield basis traders seek; the timing and trading structures do not align with typical arbitrage patterns; and the urgency indicated by execution costs suggests a forced exit rather than routine strategy closure.
This transaction highlights the presence of “whales” in the Bitcoin ETF market—large holders who, when deciding to exit, may accept heavy premiums to guarantee liquidity. This behavior shows how institutional players respond to shifting digital asset market conditions, sometimes opting for quick, costly exits to mitigate further losses amid volatile environments.