A single investor dumped over $1.29 billion worth of shares in BlackRock's bitcoin exchange-traded fund, IBIT, in a privately negotiated dark-pool transaction on Tuesday, marking what analysts are calling the largest such trade ever recorded for a spot crypto ETF.
Market Context
The massive sale occurred as investors continued pulling money out of U.S.-listed spot bitcoin ETFs for the seventh consecutive trading day. The broader exodus has now totaled $1.88 billion during this current streak, with total net outflows reaching $334 million on Tuesday alone. Bitcoin itself has retreated to under $77,000 from highs above $82,000 earlier in May, reflecting weakening momentum across the digital asset market.
Analysis
Alex Thorn, head of research at Galaxy Digital, flagged the transaction on social media platform X at 10:30 a.m. ET, calling it the biggest dark-pool trade he has ever witnessed. The transaction's size dwarfs typical institutional block trades and raises questions about the entity's conviction level regarding near-term crypto exposure.
The move doesn't necessarily indicate a complete withdrawal from bitcoin ETFs—dark pools allow buyers to step in without immediately crushing spot prices. However, IBIT processed net redemptions of $192.44 million according to data provider SoSoValue, suggesting overall sentiment tilted toward exits rather than accumulation. Over the past two weeks, investors have withdrawn a cumulative $2.26 billion from the ETF complex.
The seven-day outflow streak represents the second-longest consecutive run since spot bitcoin ETFs launched in January 2024. The longest streak on record occurred twice: an eight-day period in late August through early September 2024 that saw $1.2 billion exit, and another eight-day stretch in February 2025 totaling $3.3 billion in redemptions.
Key Numbers
- $1.29 billion: Size of the single dark-pool trade in BlackRock's IBIT ETF
- $334 million: Total net outflows from spot bitcoin ETFs on Tuesday
- $192.44 million: Net redemptions specifically for IBIT on the day
- 7 consecutive days: Current streak of net outflows (second-longest on record)
- $1.88 billion: Cumulative outflows during current redemption streak
- $2.26 billion: Total withdrawals from bitcoin ETFs over the past two weeks
- Under $77,000: Bitcoin's current price level versus above $82,000 on May 6
What to Watch
Market participants should monitor whether the outflow trend continues or stabilizes. The $80,000 level represents key resistance for bitcoin, while support sits around the $72,000-$74,000 zone. Upcoming macro catalysts including Federal Reserve commentary and economic data releases could influence risk appetite across crypto markets. If outflows accelerate toward the eight-day record, further price weakness may be imminent.
Galaxy's Thorn characterized the whale activity as a cautionary signal, suggesting the entity executing the trade may be scaling back exposure due to perceived near-term risks. Traders should watch for whether other large holders follow suit or if the selling represents an isolated rotation.