BlackRock executive denies "hedge fund collapse" causing BTC to plummet, are institutions buying the dip?

Recently, the cryptocurrency market experienced a sharp correction, with Bitcoin’s price briefly falling below a key psychological level, triggering market panic. For a time, rumors of “BlackRock IBIT hedge fund collapse causing a sell-off” were rampant. However, BlackRock executives publicly refuted these claims on February 13, using data to dispel market rumors and revealing a key signal: the true “whales” are in motion.

Market Rumors Debunked: IBIT Redemptions Only 0.2%

At the Bitcoin Investor Week 2026 event held yesterday, Robert Mitchnick, Global Head of Digital Assets at BlackRock, directly addressed market concerns, firmly denying the speculation that “IBIT hedge fund collapse triggered Bitcoin’s plunge.”

Mitchnick stated, “There is a misconception that hedge funds are causing turbulence within ETFs, creating Bitcoin volatility and selling off. But that’s not what we see.” He cited data showing that during last week’s intense Bitcoin market turbulence, the redemptions from BlackRock’s Bitcoin spot ETF (IBIT) totaled only 0.2% of the fund.

He emphasized that if large hedge funds were aggressively liquidating their arbitrage positions within the ETF, the market should have seen tens of billions of dollars in outflows. However, the reality is that billions of dollars in liquidations mainly occurred on leveraged perpetual contracts platforms, not in the spot ETF. Mitchnick pointed out, “The ETF side remains very stable, with investor bases more like long-term buy-and-hold types.”

Price Data Update: Where Does Bitcoin Stand?

According to Gate.io market data, as of February 13, BTC/USDT is trading at $67,008.3, with a 24-hour decline narrowing to 0.57%. Previously, influenced by macro factors and market panic, Bitcoin briefly dipped below the $66,000 level.

Despite price fluctuations, the resilient data from IBIT indicates that funds entering through compliant channels have not experienced panic withdrawals. This sharply contrasts with recent market rumors suggesting that one or more non-cryptocurrency hedge funds headquartered in Hong Kong might be sources of volatility.

Who Is Selling? Who Is Buying?

An earlier analyst report indicated that on February 5, BlackRock IBIT’s trading volume reached $10.7 billion, nearly double the previous record high, with options premiums around $900 million, both hitting all-time highs. Coupled with the synchronized decline of BTC and SOL at that time, market suspicion pointed to large holders of IBIT causing the volatility.

However, Mitchnick’s latest statement not only clarifies the rumors but also reveals another side of the market: genuine institutional investors are taking advantage of the decline to enter.

Mitchnick explicitly stated, “Institutional investors, sovereign nations, and banks are buying Bitcoin on dips.”

Analyst Views and Market Outlook

Although BlackRock’s IBIT remains resilient, the overall market still faces challenges. According to The Block, U.S. spot Bitcoin ETFs experienced net outflows of $410.37 million on Thursday, with IBIT alone seeing a $157.56 million outflow, reflecting macro data (such as strong non-farm payroll figures) exerting pressure on risk assets.

In this context, major banks like Standard Chartered and JPMorgan have adjusted their short-term outlooks on cryptocurrencies, though their long-term target prices remain bullish.

For traders on Gate.io, the current market structure shows clear divergence: on one side, deleveraging and liquidations in the leveraged derivatives market; on the other, steady holdings in spot ETFs and sovereign wealth funds accumulating on dips. This “ice and fire” scenario often indicates that after clearing weak leverage positions, the market may move toward healthier fundamentals.

Summary

BlackRock executives’ statements go far beyond mere denials. They convey several core messages to the market:

• Short-term selling pressure mainly stems from high-leverage perpetual contracts, not from spot ETF holdings.
• Long-term holders, represented by IBIT, demonstrate strong resilience, with only 0.2% redemptions confirming this.
• Smart money—institutions, sovereign funds, and banks—are viewing this decline as a buying opportunity, potentially setting the stage for the next phase of the market.

For investors trading on Gate.io, understanding these market structural shifts is crucial. In the face of panic rumors, data often proves more truthful than emotions. BlackRock’s clarification may mark the turning point from “rumor-driven selling” to “evidence-driven buying.”