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BlackRock Executive: Institutions Buying Bitcoin Dips – IBIT Flows Remain Stable

Robert Mitchnick, BlackRock’s Head of Digital Assets, dismisses rumors of ETF-led volatility, citing minimal redemptions compared to leverage market liquidations.

BTC

Summary

BlackRock’s Head of Digital Assets, Robert Mitchnick, stated that institutional investors are actively purchasing Bitcoin dips, dismissing claims that IBIT outflows drove recent market volatility. He noted that IBIT experienced only 0.2% in net redemptions, attributing the downturn to liquidations in the leverage market rather than ETF selling.

Terms & Concepts
  • Leverage Market: A trading environment where investors use borrowed funds to amplify potential returns, often leading to forced liquidations during high volatility.
  • Redemption: The process of selling shares in a fund, such as an ETF, back to the issuer in exchange for cash or the underlying asset.
  • iShares Bitcoin Trust (IBIT): BlackRock's spot Bitcoin exchange-traded fund (ETF) that allows investors to gain exposure to Bitcoin prices within traditional brokerage accounts.