An unknown trader’s $1.3 billion sale of shares in BlackRock’s Bitcoin exchange-traded fund on Tuesday coincided with a steep fall in the price of Bitcoin, according to analysts.

A trader sold 29.2 million shares of BlackRock’s iShares Bitcoin Trust ETF (IBIT) at 2:30 p.m. UTC on a “dark pool,” a private trading platform that institutions often use to discreetly make large trades outside of public markets.

The impact of the $1.3 billion trade was immediately felt in the crypto market, with TradingView data showing that Bitcoin (BTC) fell 1.5% from $77,875 to $76,720 in a short 10-minute window after 2:30 p.m. UTC.

Bitcoin then slid further to a 24-hour bottom of $75,600 about 12 hours later, marking a 2.8% fall for the day.

Bitcoin has historically been viewed as an asset that trades outside of the traditional market, but products such as US-based Bitcoin ETFs have removed barriers for institutional investors to trade Bitcoin, and the cryptocurrency has recently traded in high correlation with US markets.

Alex Thorn, head of firmwide research at crypto investment firm Galaxy Digital, said in a post to X that it was the biggest trade he has seen made through a dark pool.

Source: Alex Thorn

Bloomberg ETF analyst Eric Balchunas also shared that the 29.2 million IBIT shares sold at $43.16 and was over 22 times larger than the second-largest IBIT sell order on Tuesday.

Related: Goldman Sachs exits XRP, Solana ETF exposure in Q1 2026 

Bitcoin ETF outflow streak continues

US spot Bitcoin ETFs have now recorded eight straight trading days of net outflows, with a $333.6 million outflow on Tuesday, including a $192.4 million outflow from IBIT.

More than $2 billion has now flowed out from the ETFs since May 14, the last recorded net inflow across all the funds, a sign that institutional sentiment toward Bitcoin has weakened, with investors reducing exposure to Bitcoin ETFs at a rate faster than fresh capital flowing into the market.

Institutional market maker Jane Street reduced its Bitcoin ETF holdings by around 70% in the first quarter, while investment bank Goldman Sachs reduced its Bitcoin ETF position by 10%. 

Magazine: Bitcoin ETFs bleed $1B, Aave’s $71M ETH unfreeze bid delayed

Key Highlights

• HYPE reached an unprecedented peak of approximately $65 on May 26, 2026.
• Bitwise’s BHYP exchange-traded fund accumulated $40 million in assets in slightly more than one week.
• Total ETF capital inflows for HYPE touched $89 million across nine days, averaging approximately $9.2 million daily.
• The platform introduced macro-focused prediction markets covering CPI data and Federal Reserve rate decisions.
• Open interest on Hyperliquid surged to $8.5 billion, positioning it as the world’s third-largest derivatives trading platform.

Hyperliquid’s native HYPE token established a fresh record high approaching $65 on May 26, propelled by robust institutional demand through exchange-traded funds and the platform’s debut of prediction market functionality.

Bitwise’s Chief Executive Officer Hunter Horsley revealed that the BHYP ETF processed $12 million in trading activity within the first two hours of market operations on that date. The investment vehicle now manages $40 million in total assets just over a week following its market debut.

An analyst account from Coin Bureau shared insights on X regarding Bitwise’s aggressive accumulation strategy: “Bitwise bought another 162,367 $HYPE, worth about $10.1M, over the past 2 hours. Based on its official website, Bitwise already held 723,361 HYPE, worth around $40.4M, as of May 21, 2026.” The data illustrates the remarkable speed at which institutional capital has entered this digital asset.

Total capital flows into both Bitwise’s BHYP and 21Shares’s THYP products reached $89 million within a nine-day period — representing one of the most rapid ETF accumulation trajectories observed across cryptocurrency investment vehicles.

Grayscale appears to be building a HYPE position as well, presumably in preparation for its own ETF product launch. Market analyst Havoc forecasted that the forthcoming Grayscale GHYP offering might contribute an additional $8 million to $12 million in daily capital flows, potentially purchasing between 8% and 33% of HYPE’s available supply annually.

Institutional Demand Fuels Continued Rally

HYPE has maintained ongoing price discovery mode since ETF products commenced trading. The digital asset advanced from its previous breakout zone around $59.40 and touched $64.50 before continuing its ascent.

Assuming HYPE maintains support above the $59.40 level, Fibonacci extension analysis suggests potential resistance zones at $76, $89.50, and $101. Derivatives market data revealed combined open interest nearing $2 billion, with funding rates hovering around 0.004%, signaling bullish market positioning.

Cryptocurrency analyst Byzantine General observed that Hyperliquid’s cumulative exchange open interest climbed to $8.5 billion, securing the third position globally after Binance and Bybit. The platform’s market share for open interest achieved 7.2%, establishing a new milestone.

Blockchain data indicated Hyperliquid received more than $1.1 billion in net capital inflows throughout the preceding month.

Platform Debuts Macro Prediction Markets

Coinciding with HYPE’s record price achievement, Hyperliquid unveiled new macroeconomic prediction markets. The initial two offerings concentrate on year-over-year May Consumer Price Index figures and potential Federal Reserve funds rate adjustments at the upcoming June Federal Open Market Committee gathering.

The CPI-focused market registered $8,000 in trading volume with $48,000 in open interest. The Fed rate market recorded $600 in volume alongside $13,200 in open interest. Platform validators additionally greenlit a sports prediction market centered on the Champions League final match.

These new markets complement the previously launched HIP-4 market series, which features a Bitcoin daily price movement market that has generated $578,000 in trading volume and $180,000 in open interest.

The combined assets under management for HYPE ETF products stood at $89 million as of May 26, 2026.

A range of crypto companies have been included in a preliminary list for potential inclusion in the Russell 3000 index, including treasury firms Sharplink and Forward Industries, along with crypto exchange Gemini and crypto services firm Galaxy Digital. 

A preliminary index inclusion list for the Russell 3000 was published by the index’s provider, FTSE Russell, on Friday. The index tracks the 3,000 largest companies in the US and requires a market capitalization of at least $146.4 million.

Sharplink has a market cap of $1.2 billion, and the company’s CEO, Joseph Chalom, said in a statement on Tuesday that it means the firm could be included in the Russell 2000, an index that tracks the largest 2,000 publicly traded US companies.

Inclusion in the indexes is widely viewed as a boon for those added, as many active and passive funds, including exchange-traded funds, typically buy stocks included in the index.

Chalom said that joining the Russell indexes would broaden the company’s shareholder base and strengthen its access to capital markets.

Source: Joseph Chalom

Forward Industries’ chief investment officer, Ryan Navi, said the Solana treasury company is also eligible for the Russell 2000 Index, as its market cap sits at about $350 million.

“We believe index inclusion will expand our shareholder base, improve trading liquidity, and increase visibility among long-term institutional investors,” Navi said.

FTSE Russell will provide further list updates on June 5, June 12 and June 18. The newly reconstituted indexes will take effect after the US market closes on June 26.

Related: Bitcoin price lags bullish US tech stocks: Is there a silver lining?

Ether treasury company Bitmine Immersion Technologies was included in a preliminary list for potential inclusion in the Russell 3000 index. Chairman Tom Lee flagged possible inclusion in the Russell 1000, an index tracking the largest 1,000 US companies, due to Bitmine surpassing the index’s minimum market capitalization threshold of $5.7 billion.

Galaxy Digital’s market cap of $11.55 billion also makes it eligible for the Russell 1000, while Gemini’s estimated $571 million makes it eligible for the Russell 2000.

Being added to the Russell 1000 would place Galaxy and Bitmine alongside major US large-cap equities, including tech giants Nvidia, Microsoft, Apple, and Alphabet, the parent of Google.

Magazine: Polymarket seeks Japan entry, Harvard dumps entire ETH position: Hodler’s Digest, May 17 – 23   

Crypto-focused political committees are flexing their growing bipartisan political muscle in Texas, spending more than $9 million on races this cycle as Tuesday’s primaries deliver a string of wins for industry-backed candidates across both parties.

Houston Democrat Christian Menefee defeated fellow Democrat Rep. Al Green in the Democratic primary runoff for Texas’s 18th Congressional District, after Republican-led redistricting dismantled Green’s longtime seat and forced the House Financial Services Committee member into a rare incumbent-on-incumbent showdown.

Green had earned an “F” from crypto advocacy group Stand With Crypto after opposing key industry-backed legislation and warning that cryptocurrency could erode U.S. financial leverage abroad.

“Rep. Green’s defeat proves that anti-crypto hostility carries real electoral consequences,” Geoff Vetter, a Fairshake spokesperson, told CoinDesk. “Fairshake was the difference-maker in this race, and we will continue to aggressively back leaders like Rep. Menefee across the country.”

In the Republican Senate primary, Texas Attorney General Ken Paxton toppled longtime Sen. John Cornyn. In other races, Fairshake’s Republican affiliate, Defend American Jobs, and its Democratic counterpart, Protect Progress, backed candidates on opposite sides of the aisle, while the separate crypto-focused Fellowship PAC supported Paxton to the tune of $500,000.

Elsewhere in Texas, Defend American Jobs spent roughly $1.8 million backing four winning Republican candidates: Jon Bonck ($348,433), Tom Sell ($426,279), Carlos De La Cruz ($581,172) and Alex Mealer ($436,278). All four were low-turnout runoffs where the eventual nominee is typically heavily favored in November, making them efficient targets for a well-capitalized political network.

Texas had only one night of primaries, but Tuesday’s results suggest the crypto industry is already positioning aggressively with a well-capitalized war chest for the 2026 midterms, when Democrats are favored — by a slim margin — to sweep both the House and Senate.

David Hoffman, an Ethereum advocate and the co-founder of the media company Bankless, says he sold the remainder of his Ether (ETH) holdings last week as he believes the “ETH is Money” thesis has largely “played out.”

Hoffman said in an X post on Tuesday that “Ethereum got the ETH price it deserves, and I don’t see ETH being rerated as an asset, higher or lower.”

Hoffman said that Ethereum “has done incredibly well, and deserves the market cap that it has,” but the “window of opportunity for ETH to be ‘rerated’ by the market seems to be closing.”

“ETH is, to some degree, money. But not the maximally successful version that we collectively sought out to achieve.”

The “ETH is Money” thesis believes the token is a superior store of value compared to fiat money, as it is decentralized and has introduced mechanisms to try to combat inflation, or the amount of new tokens being created.

Many Ether backers believed the token could reach the high five-figures, but ETH reached an all-time high of just below $5,000 in August, about equal to its previous bull market peak during the last cycle. It has since dropped by almost 60% from its all-time peak to trade around $2,000.

ETH prices have been largely rangebound for five years. Source: TradingView

Hoffman, a long-time Ethereum bull who has written extensively on investment cases for Ether, announced selling his entire ETH holdings, the value of which he did not disclose, on May 21.

He said that Ethereum is a “giver, not a taker,” providing secure blockspace and tokenization at cost while the blockchain’s layer-2 networks capture most of the fees and benefit.

“Ethereum takes no markup for anything it does. This is the nature of open source software, and this is the power of Ethereum. Ethereum supplies its full set of incredibly important values to the world… at cost.”

Hoffman reiterated that he is “massively bullish” on Ethereum, expecting that the network will do “exceptionally well from here on out,” but only a “marginal amount” of that success will be reflected in its token.

Related: Tom Lee predicts supercycle amid Bitmine’s largest Ethereum buy in 2026

Hoffman’s sale saw mixed reactions from ETH backers, with Bankless co-founder Ryan Sean Adams saying it was the “end of an era.” 

Former Ethereum core developer Eric Connor said he didn’t really blame Hoffman because ETH has “grossly underperformed the general crypto market for many years now.”

He attributed the lag mainly to selling pressure from the large number of millionaires created during its explosive early run-up rather than fundamental protocol shortcomings.

“At the end of the day, maximalism to a single coin when it comes to portfolio management is pretty silly,” he said. 

Magazine: Polymarket seeks Japan entry, Harvard dumps entire ETH position: Hodler’s Digest

TLDR

• Cryptocurrency mining equities rallied strongly Tuesday, with TeraWulf climbing as much as 17% while Hut 8, IREN, and Riot Platforms each advanced over 5%.
• The rally accompanied the S&P 500’s push past 7,500 to new record territory, driven by a 5.6% jump in the Philadelphia Semiconductor Index, which has surged nearly 77% in 2025.
• Bernstein analysis shows 11 publicly listed Bitcoin mining companies command approximately 27 gigawatts of existing and planned electrical capacity, positioning them as key players for AI data center expansion.
• IREN’s partnership agreement with Microsoft could generate approximately $3.7 billion in annual revenue for its AI cloud services division, according to Bernstein’s estimates.
• Industry observers caution that Bitcoin network security may face heightened concentration risks as major miners transition to AI operations, though hybrid models combining both activities appear most viable.

Cryptocurrency mining equities posted substantial gains Tuesday as a powerful rally in chip and technology stocks boosted investor enthusiasm throughout the industry. Market participants increasingly recognize crypto mining operations as emerging participants in the artificial intelligence infrastructure expansion.

Semiconductor Rally Powers Mining Stock Advances

TeraWulf topped the sector’s performance, surging as much as 17% following its announcement of acquiring a Kentucky-based data center facility. Hut 8, IREN, and Riot Platforms each finished the trading session with gains exceeding 5%.

TeraWulf Inc., WULF

These advances occurred as the S&P 500 established new all-time highs, breaching the 7,500 threshold for the first time ever. The Philadelphia Semiconductor Index posted a robust 5.6% gain and has now appreciated nearly 77% since the start of the year.

Market enthusiasm for mining companies has intensified as additional firms announce intentions to redirect their electrical infrastructure toward high-performance computing and artificial intelligence applications. These operations are perceived as potentially offering greater stability and profitability compared to cryptocurrency mining as a standalone business.

Bernstein’s analysis identified that 11 publicly traded Bitcoin mining enterprises collectively possess roughly 27 gigawatts of current and anticipated electrical capacity. Industry experts argue that dependable electricity access — rather than chip availability — is emerging as the primary constraint for expanding AI infrastructure.

This situation positions mining companies advantageously to function as strategic collaborators for hyperscale cloud providers and artificial intelligence firms seeking established power and data center capabilities.

IREN exemplifies a mining operation already executing this transformation. The firm recently finalized a partnership with Microsoft that Bernstein projects could generate an annual revenue run rate approaching $3.7 billion for its AI cloud infrastructure operations.

Bitcoin Price Dynamics and Industry Transformation

While the AI transformation has elevated mining stock valuations, Schwab analysts observe it simultaneously introduces questions regarding Bitcoin’s underlying fundamentals.

Mining operations have traditionally established a pricing floor for Bitcoin. When Bitcoin prices approach or fall below production costs for less efficient operators, it has historically indicated downside support levels. Glassnode figures from May 2026 position inefficient miner production expenses at approximately $95,000.

Bitcoin previously reached a peak of $126,000 before declining to roughly $60,000, a threshold that aligned closely with the 200-week moving average and efficient miner production costs during that period.

Schwab’s research team highlights that as prominent mining companies redirect resources toward AI applications, the quantity of active Bitcoin miners supporting the network may decrease. This creates increased concentration among the remaining mining participants, which analysts suggest could theoretically elevate transaction censorship risks or compromise network security over extended timeframes.

Nevertheless, most industry analysts anticipate a hybrid operational model will dominate. Bitcoin mining operates continuously around the clock and can utilize capacity during off-peak periods when AI inference demand diminishes. Inference workloads are forecast to constitute over 50% of worldwide data center demand by 2030, though this demand concentrates during standard business hours.

In operational terms, analysts envision miners employing Bitcoin mining as continuous baseline activity while layering AI inference tasks during high-demand periods — an approach that diversifies revenue streams and mitigates the cyclical volatility that has historically challenged the sector.

Schwab assigns Bitcoin a more favored rating among digital currencies and maintains a neutral stance on Ether, while designating XRP and Solana as less favored alternatives.

Regarding governmental backing, Schwab observes that 28 U.S. states are currently evaluating strategic Bitcoin reserve programs. New Hampshire, Arizona, and Texas have already enacted legislation creating such reserves.