Unknown Trader Dumps $1.3B in Bitcoin ETF on Dark Pool, Triggers 1.5% BTC Drop on Tuesday

According to ChainCatcher, an unknown trader liquidated approximately $1.3 billion worth of iShares Bitcoin Trust (IBIT) via dark pool on Tuesday (May 26) at 14:30 UTC, selling 29.2 million shares at $43.16 per share. The sale triggered a sharp decline in Bitcoin, which dropped from $77,875 to $76,720 within 10 minutes—a 1.5% plunge—and subsequently fell further to around $75,600.

Galaxy Digital research lead Alex Thorn described it as the largest IBIT dark pool transaction he has observed. Bloomberg ETF analyst Eric Balchunas noted the trade's size exceeded the day's second-largest IBIT sell order by 22 times. The transaction occurs amid persistent outflows from U.S. Bitcoin spot ETFs, which have posted net outflows for eight consecutive trading days. On Tuesday alone, U.S. Bitcoin ETFs saw $333.6 million in net outflows, with IBIT accounting for $192.4 million. Since May 14, cumulative Bitcoin ETF outflows have surpassed $2 billion.