NYDIG said a $1.26 billion IBIT block trade likely reflected a rapid Bitcoin exit rather than a basis trade unwind.
Bitcoin ETF News
A $1.26 billion off-exchange block sale of BlackRock's iShares Bitcoin Trust (IBIT) on May 26 was most likely a large investor exiting Bitcoin (BTC) exposure quickly, according to an analysis published by crypto investment firm NYDIG. The firm said the transaction does not fit the profile of a hedge-fund basis trade unwind.
The sale involved 29.21 million IBIT shares, which changed hands at $43.16 per share through the FINRA/Nasdaq TRF Carteret facility. That venue is commonly used for privately negotiated off-exchange transactions. IBIT's market price at the time of the trade was $44.17.
A 2.3% Discount Points to Speed Over Price
The seller accepted a discount of $1.01 per share, representing a 2.3% concession and roughly $29.5 million in execution costs. NYDIG said a seller willing to absorb a discount of that size was prioritizing speed and certainty over recovering full market value.
Some market participants had suggested the block was connected to a basis trade, a strategy where an investor holds spot Bitcoin exposure while simultaneously shorting futures contracts. NYDIG rejected that reading. The firm said the 2.3% discount would have materially reduced the returns that strategy is designed to generate.
NYDIG also examined activity in CME Bitcoin futures at the time of the trade. The IBIT position was equivalent to roughly 3,700 CME contracts. Only 91 contracts traded during the minute the block was executed, with no unusual volume spike recorded.
Seller Identity Remains Unknown
NYDIG global head of research Greg Cipolaro wrote that the trade size, the accepted discount, the absence of matching CME futures activity, and the narrow pool of potential sellers all argue against a basis-trade interpretation. He noted the position exceeded the disclosed holdings of every identified IBIT investor in recent 13F filings, making the seller difficult to identify through public data.
IBIT recorded approximately $720 million in net redemptions across May 26 and May 27. NYDIG said ETF flow data alone cannot link specific redemptions to the block transaction. The firm said available information cannot determine whether the sale reflected investor redemptions, a risk management decision, or a discretionary choice to reduce BTC exposure.
The trade occurred during a period of persistent outflows across US spot Bitcoin ETFs. According to SoSoValue data, the funds posted net outflows on every trading day from May 15 through May 29. Total assets across the category fell from $107.75 billion on May 14 to $94.17 billion by May 29. Bitcoin has declined 16% in 2026.
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