TLDR:
- Only 0.2% of IBIT assets were redeemed during recent Bitcoin volatility
- BlackRock says ETF investors are long-term and buy-and-hold focused
- Major liquidations occurred on leveraged perpetual platforms
- IBIT has grown to nearly $100B despite short-term market swings
Bitcoin exchange-traded fund investors remained steady during last week’s market turbulence, according to BlackRock.
The asset manager reported minimal redemptions from its iShares Bitcoin Trust, even as leveraged traders faced sharp liquidations across perpetual futures platforms.
BlackRock Reports Limited IBIT Redemptions
A recent post by CryptosRus on X cited comments from BlackRock executive Robert Mitchnick. He stated that only about 0.2% of the $IBIT was redeemed during the recent Bitcoin volatility.
The iShares Bitcoin Trust, known as iShares Bitcoin Trust, has grown to roughly $100 billion in assets in record time. Despite the rapid growth, redemptions during the market swing remained nearly flat.
Mitchnick explained that if hedge funds had aggressively reduced ETF exposure, billions in outflows would have appeared. However, that scenario did not occur. Instead, the bulk of liquidations took place on leveraged perpetual trading platforms.
These remarks came from BlackRock, the world’s largest asset manager with over $14 trillion in assets under management. The firm described its Bitcoin ETF investor base as largely long-term and buy-and-hold oriented.
That characterization suggests the presence of institutional capital rather than short-term trading desks. As a result, ETF flows remained stable even while Bitcoin prices moved sharply.
Leverage Drives Volatility as ETF Base Holds Firm
The contrast between ETF stability and leveraged liquidations stands out. According to the statements referenced in the tweet, leverage created most of the volatility seen during the period.
Perpetual futures platforms often amplify price swings when traders use high leverage. When markets move against those positions, forced liquidations can accelerate declines or rallies.
In this case, the turbulence occurred largely within those leveraged venues. Meanwhile, spot ETF investors did not rush to exit positions. That dynamic marks a shift from earlier crypto cycles dominated by retail speculation.
The steady ETF base points to deeper capital participation in the Bitcoin market. With a growing pool of long-term holders, market shocks may be absorbed differently compared to prior periods.
Moreover, the presence of large asset managers changes the structure of Bitcoin ownership. Institutional allocation through regulated vehicles offers a different capital profile than margin-based trading.
As noted in the tweet, the takeaway centers on the source of volatility. Leverage drove price action, while ETF holders remained composed. For market observers, this separation between trading platforms and fund flows offers a clearer view of where pressure originated.
