Unusual trading in BlackRock’s bitcoin ETF, iShares Bitcoin Trust (IBIT), has led traders to speculate that this week’s sharp Bitcoin drop may have been triggered by one or more Hong Kong–based hedge funds, rather than selling pressure from crypto traders.
The theory was laid out in a post on X by Parker White, the COO and CIO of DeFi Development Corp, and centers around record trading and options activity in IBIT.
Bitcoin (BTC) fell sharply over the past week, dropping 16%, and trading as low as $62,000 on Thursday before rebounding to around $70,400 on Friday, per CoinGecko. On Thursday, IBIT recorded its highest daily trading volume to date, with about $10.7 billion traded. Despite the heavy volume, IBIT recorded only $175 million in net outflows, according to SoSoValue.
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