$1.26B IBIT Block Trade Was Likely a Fast Exit, Says NYDIG

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.