The $1.26 billion block trade in BlackRock's iShares Bitcoin Trust (IBIT) last week was likely a rapid exit from a directional trade by a large investor (a whale). Greg Cipolaro, head of research at financial services firm NYDIG, analyzed the details of the operation and reached this conclusion. This is reported by Cointelegraph.com reports.
On Tuesday, an anonymous trader sold 29.2 million shares of BlackRock's IBIT through a "dark pool"—a private platform where institutions execute large trades without impacting the public market. In a research report, Cipolaro noted that the seller agreed to sell the shares for $1.01 below the market price, sacrificing $29.5 million in profit for rapid execution. This indicates an urgent exit from a concentrated position.
Large transactions usually affect market sentiment. Following this trade, the price of Bitcoin (BTC) fell by 2.8% during the day. According to Bloomberg ETF analyst Eric Balchunas, the market absorbed such a massive sale better than expected. However, the reason for the seller's decision—whether due to personal constraints or a change in investment outlook—remains unknown.
Bitcoin ETFs listed in the US have recorded net outflows for 11 consecutive trading days. According to Farside Investors, $333.6 million was withdrawn from funds on the day the IBIT trade occurred. Since May 14, a total of over $2.9 billion has flowed out of ETFs.
Meanwhile, overall market sentiment remains unstable. The Crypto Fear & Greed Index showed 29 out of 100 on Monday, indicating "fear" in the market. Cipolaro believes the methods used by the whale suggest urgency, which could be related to investors withdrawing funds or balance sheet constraints.
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