$1.3B IBIT Block Trade Coincides With Bitcoin Volatility as Traders Watch ETF Flows

• $1.3 billion BlackRock’s IBIT block trade aligned with sharp Bitcoin market swings.
• Bitcoin dropped below $76K amid volatility following a large IBIT block trade.
• Eric Balchunas noted that IBIT’s price remained stable despite the massive block trade.

Bitcoin trading activity turned volatile during the U.S. session as traders reacted to a reported $1.3 billion block transaction tied to BlackRock’s IBIT ETF 

Senior ETF analyst Eric Balchunas confirmed that about 29 million shares of IBIT traded at approximately 10:30 a.m., totaling about $1.3 billion. According to Balchunas, the market absorbed the trade without major disruption to IBIT’s share price during the session.

However, separate market commentary circulating across crypto trading platforms linked the transaction to increased volatility in Bitcoin spot markets. Data referenced by Bitcoin News described the transaction as one of the largest institutional-sized Bitcoin ETF prints recorded since the ETF launched.

Bitcoin Price Reversed After Institutional-Sized Trade

Charts tracking the BTC/USD pair on Coinbase showed Bitcoin moving toward the $78,000 level before a turn within the same trading window. The move later extended into an intraday decline, with Bitcoin falling below $76,000 during the session.

Market participants monitoring the transaction said the timing of the reported IBIT block transaction aligned with rising sell pressure and rapid liquidation activity across the crypto market. Trading activity also showed a weakening of momentum later in the day, as traders reduced short-term exposure following the reversal.

BlackRock IBIT Leads Bitcoin ETF Outflows 

Bitcoin ETFs recorded $333.7 million in outflows on May 26, extending the streak of consecutive daily outflows to seven days. BlackRock’s IBIT led the withdrawals with $192.44 million, followed by Fidelity’s FBTC at $57.7 million, Grayscale’s GBTC at $41.3 million, Bitwise’s BITB at $28.8 million, and Grayscale’s BTC fund at $13.43 million.

The cumulative total net inflow currently stands at $56.75 billion, while total net assets have reached $98.40 billion, representing 6.45% of Bitcoin’s total market capitalization.

The large IBIT transaction and ongoing ETF outflows have reinforced concerns over short-term Bitcoin momentum as traders continue monitoring institutional activity for signs of broader market direction.

Related: BlackRock’s $732M IBIT Buying Lifts Bitcoin as $79K Caps Upside