BlackRock’s iShares Bitcoin Trust (IBIT) received $231.6 million in investment despite Bitcoin’s 13% decline. However, data shows the ETF is experiencing record activity.
The behavior of flows in Bitcoin spot ETFs sent a clear signal to the market: IBIT acted as the main magnet for liquidity amidst a day of intense price stress. On February 7, the fund absorbed $231.6 million in net inflows, precisely on the same day that Bitcoin suffered what was described as its second-worst daily drop since its launch.
IBIT recorded a trading volume of nearly $10 billion, with more than 284 million shares traded, an all-time record for the ETF. This level of activity did not go unnoticed, especially since it coincided with combined net outflows of approximately $272 million in other Bitcoin spot ETFs in the United States.
A key point to consider is that this internal divergence led analysts to dismiss the idea of a widespread market sell-off. Instead, they interpreted the episode as a liquidity and rotation event, where capital was quickly reallocated among vehicles, favoring the ETF with greater depth and operational efficiency.
From this perspective, IBIT was not a passive victim of the bitcoin price drop, but rather the main recipient of fresh or recycled capital during the sell-off. The scale of the transactions suggested active decision-making, more associated with tactical adjustments than panic.
BlackRock’s IBIT’s key role in the Bitcoin ecosystem
Several market observers agreed that the movement was not a simple retail “buy the dip.” On the contrary, it was described as a complex reconfiguration led by institutional capital, reinforcing IBIT’s role as a central conduit for regulated liquidity for bitcoin.
Part of the flow reportedly came from long-term investors who took advantage of price levels they previously considered inaccessible. Along these lines, it was noted that some institutional participants saw the correction as a structural opportunity rather than an exit signal.
In parallel, the derivatives market showed a marked increase in activity, with a clear bias towards put options. This demand for downside protection was interpreted as a sign of caution: traders were not betting unilaterally on an immediate rebound, but rather hedging risk while repositioning their exposure.
For market participants, this episode has two relevant practical implications. First, flows concentrated in a single, highly liquid ETF can amplify intraday movements in stressful environments. Second, a derivatives structure biased towards hedging can maintain high volatility in the short term by interacting with spot market liquidity.
Looking ahead, IBIT is positioned as a focal point for institutional liquidity during price discovery phases.
