Robert Mitchnick from BlackRock has remarked on the heightened volatility of Bitcoin, comparing its trading behavior to that of a “leveraged Nasdaq,” as the role of derivatives, including leveraged options and perpetual contracts, becomes increasingly significant in driving Bitcoin’s price fluctuations. These derivatives, as opposed to exchange-traded funds (ETFs), are primarily responsible for the amplified movements in Bitcoin, exacerbating shifts through forced hedging and margin calls. Despite this volatility, Bitcoin ETFs have maintained stability, with insignificantly low IBIT redemptions at just 0.2%, further underscoring that derivatives, not ETF withdrawals, are the main contributors to recent market shocks.
Bitcoin volatility driven by derivatives, not ETFs: BlackRock
