BlackRock's global head of digital assets denied that "IBIT hedge fund liquidations caused the sharp market decline," noting that net redemptions last week were only 0.2%.

According to Odaily Odaily, Robert Mitchnick, Global Head of Digital Assets at BlackRock, stated that institutions, sovereign wealth funds, and banks are currently buying Bitcoin on dips. Regarding market rumors that the recent sharp market decline was due to IBIT hedge funds liquidating and dumping Bitcoin, Mitchnick said, "There's a misconception that hedge funds are maliciously dumping Bitcoin in ETFs to create volatility, but the data completely contradicts this claim. During last week's sharp Bitcoin correction, BlackRock's IBIT saw only a 0.2% net redemption. If it were truly a large-scale hedge fund liquidation for arbitrage, there should have been billions of dollars in outflows. The reality is that liquidations were concentrated on leveraged perpetual contract platforms. IBIT's funding situation is extremely stable, and its holders are primarily long-term portfolio investors."