BlackRock IBIT defies the trend and raises 74 million USD! Bitcoin holds the key at 100,000 revealed.

The tariff storm has severely hit the market, with $7 billion in crypto positions liquidated, yet Bitcoin has not fallen below $100,000. BlackRock's IBIT continued to buy in while all ETFs retreated, becoming an invisible support for stabilizing prices.

Impact of Tariffs on Bitcoin ETF Watershed

(Source: Farside)

On October 10, Trump's threats regarding Chinese tariffs triggered a global sell-off in risk assets, with Bitcoin dropping over $110,000 from its peak within 24 hours, leading to approximately $7 billion in leveraged positions being forcibly liquidated. The market widely anticipated a massive redemption wave for spot Bitcoin ETFs, but Farside data showed unexpected results: on that day, the total net outflow for US spot ETFs was only $4.5 million, while BlackRock's IBIT saw a net inflow of as much as $74.2 million.

This phenomenon of "counter-trend capital absorption" is not accidental. On Monday, October 13, when other ETFs experienced a total outflow of $326.4 million, IBIT once again flowed in with $60.4 million. This structural difference reveals the true attitude of institutional investors and explains why the price of Bitcoin was able to stabilize rapidly after macroeconomic panic.

The capital frenzy at the beginning of the week lays the foundation for defense

From October 6 to 8, the US spot Bitcoin ETF experienced record inflows of capital:

October 6: Net inflow of $1.21 billion in a single day (highest in months)

Cumulative over three days: More than 2 billion dollars in new funds have entered custody.

Main contributor: IBIT accounts for the largest share of inflow.

The "pre-impact injections" of funds provided a crucial buffer for the ETF. When tariff news triggered sell-offs, early buying institutional investors did not panic and redeem their positions, but instead continued to increase their holdings as prices fell.

How IBIT Becomes a Bitcoin Price Stabilizer

· Leverage Effect of Authorized Participant Mechanism

ETF redemptions do not directly trigger a sale by the exchange. Authorized Participants (AP) handle the process as follows:

· Investors redeem ETF shares

AP hedges risks through futures and spot markets

· Bitcoin actual transfer delayed for several days to complete

The slight net outflow on October 10 may have triggered a hedge sell-off by AP, but the inflow of 74.2 million USD into IBIT offset this pressure, keeping the overall primary market neutral and avoiding a chain sell-off.

· The advantage of differentiated holder structure

BlackRock IBIT saw an inflow of $74.2 million on tariff day, while other ETFs experienced a total outflow of funds. This divergence stems from differences in holder structures: IBIT has the lowest fees (only 0.25%) and the largest scale advantage, attracting predominantly institutional long-term allocation funds. In contrast, mid-sized and small ETFs have a higher proportion of retail investors, facing greater redemption pressure during market volatility.

This differentiation shows that high-net-worth investors and institutions have stronger resilience to market fluctuations, viewing price pullbacks as opportunities to increase their positions rather than exit signals.

Derivatives Clearing vs. ETF Stability: A Clash of Two Forces

The 7 billion USD liquidation mainly comes from leveraged derivative positions, rather than panic from ETF holders. The two markets exhibit completely different characteristics:

The derivatives market adopts high leverage operations, triggering instant liquidation during price fluctuations, significantly amplifying market volatility. In the crash on October 10, the forced liquidation of futures and perpetual contracts created a chain reaction, creating immense selling pressure in a short period.

The spot ETF market has structural buffering advantages: investors cannot use leverage, the redemption process has time delays, and the hedging mechanisms of authorized participants disperse selling pressure. These characteristics allow ETFs to act as "shock absorbers" during sharp declines.

On October 13, Bitcoin rebounded to the range of $105,000, due to the dual effect of continuous buying by IBIT and the completion of derivatives liquidation. After Trump sent a signal of "keeping negotiations open with China," market sentiment quickly recovered, and the stable structure of the ETF system provided a liquidity foundation for the rebound.

Three Key Insights

1. Diversification of Buyer Groups

Not all ETF holders behave the same. Institutional clients of IBIT view volatility as a buying opportunity, while small and medium-sized ETFs face redemption pressure from retail investors. This divergence may continue to play a stabilizing role in future market fluctuations.

2. The inflow at the beginning of the week changes the starting point

The 2 billion dollars injected at the beginning of October acted like a ballast, providing support below the price. These new holders have not yet made a profit, and their willingness to redeem is low, creating a natural defense line for the price.

3. Regulatory products alleviate panic

Compared to the dramatic rise and fall driven by derivatives in the bull market of 2021, the era of ETF shows stronger price resilience for Bitcoin. Institutional-grade products are changing the volatility characteristics of the encryption market.

· Bitcoin spot ETF opens the era of institutional-level allocation

The逆勢 performance of BlackRock's IBIT proves that the nature of volatility is changing as traditional financial giants enter the encryption market. While retail investors panic due to news, institutions are systematically building positions. As more pension funds and sovereign wealth funds allocate Bitcoin through ETFs, it may be difficult to create a single-day fall of over 10% in the future, similar to tariff events.