Arthur Hayes Explains How BlackRock IBIT Hedging Shaped Recent Bitcoin Sell-Off

TLDR: Dealer hedging from BlackRock IBIT structured notes amplified Bitcoin price swings at key triggers.  Structured products with knock-ins, auto-callables, and buffers force automatic BTC market flows.  Mapping issuance and barrier levels helps traders anticipate short-term Bitcoin price movements.  Bitcoin volatility driven by flows often occurs independently of broader market sentiment shifts.   BlackRock IBIT [...]

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