ChainCatcher reports that Bitwise advisor Jeff Park has published an article reviewing the recent sharp market decline. He first clarified that the claim that "Nasdaq has removed position limits for IBIT options, thus giving Wall Street unlimited leverage" is untrue.
BlackRock's IBIT and BITB have always adhered to the standard position limit of 250,000 units. SEC filings only raised the position limit for spot ETFs such as FBTC and ARKB to 250,000 units, aligning them with the IBIT and BITB position limits to ensure fair market competition. Last November, BlackRock's IBIT submitted an application to increase the limit from $250,000 to $1 million, but this was not approved.
Jeff Park stated that the market crash was more likely triggered by risk mitigation within the traditional financial system and derivatives mechanisms, rather than by fundamental changes in the crypto industry itself or a single "black swan" event. On that day, Bitcoin ETFs, especially IBIT, saw record trading volumes and options activity, with options trading clearly dominated by bearish positions.
Bitcoin fell more than 13% in two days, and the market had initially expected a large-scale outflow of ETF funds, but the actual data showed a net inflow. This indicates that the selling pressure mainly came from "paper money" and non-directional transactions related to hedging and market making, rather than a withdrawal of long-term funds. Changes in ETF net inflows in the coming days will be an important indicator to observe whether there is new long-term demand.
