Recently, the crypto market experienced a sharp correction, with the Bitcoin price briefly falling below a key psychological threshold, sparking widespread panic. Rumors quickly spread that a "BlackRock IBIT hedge fund blowup" was behind the sell-off. However, on February 13, BlackRock executives publicly refuted these claims, using data to dispel the rumors and revealing a crucial signal: the real "whales" are making their move.
Market Rumors Debunked: IBIT Redemptions Only 0.2%
At yesterday’s Bitcoin Investor Week 2026 event, Robert Mitchnick, BlackRock’s Global Head of Digital Assets, directly addressed concerns, firmly denying speculation that a "IBIT hedge fund blowup caused Bitcoin’s steep drop."
Mitchnick stated, "There’s a misconception that hedge funds are stirring up volatility and dumping Bitcoin through ETFs. But that’s simply not what we’re seeing." Citing data, he explained that during last week’s intense Bitcoin market swings, total redemptions from BlackRock’s spot Bitcoin ETF (IBIT) amounted to just 0.2% of the fund.
He emphasized that if hedge funds were truly unwinding massive arbitrage trades within the ETF, the market would have seen outflows in the billions of dollars. In reality, the bulk of liquidations—totaling billions—occurred on leveraged perpetual contract platforms, not in spot ETFs. Mitchnick noted, "The ETF side has remained very stable, with a predominantly long-term, buy-and-hold investor base."
Price Update: Where Does Bitcoin Stand Now?
According to Gate market data, as of publication on February 13, BTC/USDT was trading at $67,008.3, with the 24-hour loss narrowing to 0.57%. Previously, Bitcoin had briefly dipped below the $66,000 mark due to macroeconomic factors and market panic.
Despite the price fluctuations, IBIT’s resilience shows that capital entering through regulated channels has not fled in panic. This stands in stark contrast to recent rumors suggesting that "one or more non-crypto hedge funds headquartered in Hong Kong may have triggered the volatility."
Who’s Selling? Who’s Buying?
Earlier analyst reports indicated that on February 5, BlackRock’s IBIT saw trading volumes reach $10.7 billion—nearly double its previous single-day record—with options premiums around $900 million, both all-time highs. Given the simultaneous declines in BTC and SOL at that time, the market suspected that large IBIT holders were behind the volatility.
However, Mitchnick’s latest comments not only clarify the rumors but also reveal another side of the market: true institutional investors are taking advantage of the dip to enter the market.
Mitchnick stated clearly, "Institutional investors, sovereign nations, and banks are buying Bitcoin on the dip."
Analyst Perspectives and Market Outlook
While BlackRock’s IBIT has remained solid, the broader market still faces challenges. According to The Block, US spot Bitcoin ETFs recorded net outflows of $410.37 million on Thursday, with IBIT alone seeing $157.56 million in outflows. This reflects the broader pressure on risk assets from macro data, such as strong nonfarm payroll numbers.
Against this backdrop, major banks like Standard Chartered and JPMorgan have also adjusted their short-term outlooks for cryptocurrencies, though their long-term price targets remain bullish.
For traders on Gate, the current market structure is clearly divided: on one side, leveraged contract markets are undergoing deleveraging and liquidations; on the other, spot ETFs remain firmly held, with sovereign wealth funds buying the dip. This "fire and ice" scenario often signals that, after weak leveraged positions are flushed out, the market may be poised for a healthier foundation.
Conclusion
BlackRock executives’ statements go far beyond simply refuting rumors. They send several key messages to the market:
- Short-term selling pressure: Primarily comes from highly leveraged perpetual contract markets, not from spot ETF holders.
- Long-term holder confidence: Spot ETF investors, represented by IBIT, have shown remarkable resilience, as evidenced by a mere 0.2% redemption rate.
- Smart money moves: Institutions, sovereign funds, and banks are viewing this downturn as a buying opportunity, potentially setting the stage for the next phase of the market.
For investors trading on Gate, understanding these shifts in market structure is essential. In the face of panic-driven rumors, data often tells a more honest story than emotion. BlackRock’s clarification may well mark the turning point from "selling on rumor" to "buying on confirmation."
