BlackRock: Just 0.2% of IBIT Redeemed During BTC Volatility

BlackRock says only 0.2% of its $100B IBIT Bitcoin ETF redeemed during volatility, as liquidations hit leveraged crypto platforms.

BlackRock reported limited redemptions from its spot Bitcoin ETF during recent market volatility. The firm said only about 0.2% of IBIT shares were redeemed during last week’s Bitcoin price swings.

The comments came as digital asset markets faced sharp liquidations across leveraged trading platforms.

Only 0.2% of IBIT Redeemed During Volatility

Robert Mitchnick, a senior executive at BlackRock, addressed the recent Bitcoin sell-off.

He stated that approximately 0.2% of IBIT was redeemed during the period of volatility. He described the outflow as minimal relative to the fund’s size.

IBIT has grown to roughly $100 billion in assets within a short period. The ETF reached that level in record time after launch.

A 0.2% redemption rate represents a small fraction of total holdings.

Mitchnick said that if hedge funds were rapidly exiting positions, outflows would have reached billions of dollars. He noted that such large withdrawals were not observed.

The data suggests that most ETF investors maintained their positions.

Liquidations Concentrated on Leveraged Platforms

While ETF flows remained stable, leveraged crypto markets saw forced liquidations.

These liquidations occurred mainly on perpetual futures platforms. Traders using high leverage faced margin calls as prices declined.

Mitchnick stated that “the real liquidations happened on leveraged perpetual platforms.” He indicated that the volatility was linked to leverage rather than ETF selling.

The distinction separates spot ETF flows from derivatives market activity. Bitcoin’s price swings triggered automatic position closures across exchanges.

These mechanisms are common in leveraged trading environments. Spot ETF investors are not directly exposed to margin liquidation processes.

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Institutional Base Described as Long-Term

BlackRock manages more than $14 trillion in assets globally. The firm described IBIT’s investor base as largely long-term and buy-and-hold.

Mitchnick said this reflects institutional participation rather than short-term trading desks.

He indicated that the ETF structure attracts a different investor profile. Traditional asset managers, pension funds, and advisory platforms use regulated products.

These participants often operate under longer investment horizons.

BlackRock’s comments frame the recent volatility as leverage-driven rather than ETF-driven.

IBIT’s limited redemptions occurred during a period of sharp Bitcoin price movement. The data provides insight into how spot Bitcoin ETFs behaved during market stress.

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