BlackRock's IBIT Sees Large Bitcoin Sales as Whale Exit and Redemptions Draw Scrutiny
A single seller dumped 29.21 million IBIT shares in an off-exchange block trade at a 2.3% discount, while BlackRock separately moved Bitcoin to Coinbase Prime to meet redemptions. Sources agree the selling reflects investor outflows and a directional retreat, though they differ on the scale of the BlackRock figure and on the trade's motive.
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The Block Trade and Its Discount
A single seller executed the largest off-exchange trade in US spot Bitcoin ETF history, selling 29.21 million shares of BlackRock's iShares Bitcoin Trust (IBIT), a $1.26 billion position, according to NYDIG's analysis as reported by CryptoSlate. The block cleared at $43.16 per share, a 2.3% discount to the prevailing open-market price of $44.17 at that moment. NYDIG estimates the execution cost roughly $29.5 million.
The trade was printed to the FINRA/Nasdaq TRF Carteret facility and carried an Intermarket Sweep Order designation and a Reg NMS trade-through exemption. Those flags allow a seller to bypass seeking the best displayed price across public venues, which NYDIG reads as a preference for immediate certainty over price.
Why Analysts Reject the Basis-Trade Explanation
Market commentators often attribute large ETF prints to basis-trade unwinds, in which a firm holds a spot ETF against a short futures position to capture the spread. NYDIG argues this does not fit. A 230-basis-point loss on the spot leg would erase much of a basis trader's expected annual return, and an arbitrage desk facing no margin pressure would typically unwind gradually over days or weeks.
NYDIG also points to the futures market. The 29.21 million-share block equates to roughly 18,500 BTC, and a delta-neutral exit of that size would require buying back on the order of 3,700 Bitcoin futures contracts. As summarized in the CryptoSlate piece, the analysis treats the futures activity as the strongest evidence against a hedged exit, though the full futures data is not in the excerpt available here. The overall reading is a directional, urgent sale.
BlackRock's Own Bitcoin Transfers
Separately, Crypto Briefing reports that BlackRock sold $405.3 million worth of Bitcoin, citing a post on X. The outlet attributes the selling to IBIT redemptions rather than a view on the asset. In late October 2026, the fund moved 3,215 BTC (about $262 million) and 1,698 BTC (about $136 million) to Coinbase Prime, the institutional arm of the exchange. Because spot ETFs must shrink holdings when investors redeem, that Bitcoin had to leave the fund.
The two sources differ on the $405.3 million figure, which Crypto Briefing sources to a social media post and which does not appear in the CryptoSlate account. The Coinbase Prime transfers sum to roughly $398 million at the stated values, close to but not identical with that headline number. BlackRock has said the transfers reflect holdings adjustments to match demand and that it is not selling for its own account.
Flows and Market Context
Crypto Briefing reports a net outflow of $635 million from US Bitcoin ETFs on October 23, 2026, with BlackRock and Fidelity as the main contributors. Bitcoin traded near $80,000 to $82,000 during the period. The same reporting notes that IBIT has also logged single days with inflows above $405 million, and that its cumulative inflows since its January 2024 launch remain in the tens of billions of dollars.
The two accounts agree on the core dynamic: sizable outflows from IBIT and related ETFs forced Bitcoin supply onto the market during a period of weakness. They diverge on interpretation. NYDIG characterizes the largest block as a deliberate, time-sensitive exit by a single seller, while Crypto Briefing frames the BlackRock transfers as routine redemption mechanics. Neither source establishes whether the block seller and the redemption flows are connected.
Why It Matters
For Traders
Heavy ETF redemptions force Bitcoin supply into the market, so near-term price pressure is worth watching in daily flow data before reading any single block trade as a trend.
For Investors
Outflows from the two largest spot Bitcoin ETF issuers during a period of weakness are a useful gauge of institutional sentiment, though BlackRock says its outlook is unchanged.
For Builders
Redemption-driven custody transfers between ETF issuers and institutional prime brokers show how spot ETF flows move through exchange infrastructure and may matter for settlement tooling.
This article is for information only and is not financial advice. Read the full disclaimer.
