BlackRock executive denies speculation that "IBIT hedge fund blowup caused Bitcoin's sharp decline": IBIT is very stable, with fund redemptions at only 0.2%
BlockBeats News, February 13, Robert Mitchnick, Global Head of Digital Assets at BlackRock, stated yesterday at the Bitcoin Investor Week 2026 event that institutional investors, sovereign nations, and banks are buying bitcoin on dips.
In addition, Mitchnick clarified the speculation regarding "IBIT hedge fund blowup causing a sharp drop in bitcoin." He said there is a misconception that hedge funds are stirring up trouble in the ETF, causing bitcoin volatility and selling off. "But that's not what we're seeing. The bitcoin market was clearly turbulent last week, and we looked at the data for IBIT (BlackRock Bitcoin ETF). The total redemption volume for the entire fund was only 0.2%. If there really were a large number of hedge funds aggressively unwinding their arbitrage trades in the ETF, you would see billions of dollars flowing out. What we actually saw was billions of dollars in liquidations on those leveraged perpetual contract platforms. The ETF side, however, has been very stable, and the investor base is more like the type that buys and holds for the long term."
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