How would the Fed's cash out $1Billion of 1's & 0's (Digital Money)?
Seriously?
They would go through brokers and sell it in blocks. Dumping all of that on a thin market would drop it like a stone. So they break it up into blocks of $50 million and sell it to private investors.
Honestly, they should hang onto it. It’s only going up in value. They could cash out a limited amount every year or so. In 5 years that billion will be worth about 3-5 billion.