iShares Bitcoin Trust ETF Records Put-Dominated Volume as Forced Deleveraging Sends Bitcoin to $60K
iShares Bitcoin Trust ETF saw record spot and options volume with put activity dominating as multi-strategy funds rapidly de-grossed portfolios, forcing Bitcoin down to $60,000. Despite heavy selling, ETF flows remained positive, indicating most shares were sold by hedged basis trades and relative-value positions rather than long-only exits.
1. Forced Deleveraging Triggers Sell-Off
Multi-strategy funds hit by an extreme drawdown in software and other risk asset stocks de-grossed positions rapidly, triggering record spot and options volume in IBIT dominated by put activity and driving Bitcoin’s price down to $60,000.
2. Positive ETF Flows Reveal Hedged Selling
Despite intense selling pressure, iShares Bitcoin Trust ETF registered net inflows, indicating that most share movements were driven by market-neutral strategies such as CME basis trades and relative-value positions rather than long-only investors exiting.
3. Futures Basis and Short Gamma Amplification
The unwinding of hedged positions caused the Bitcoin futures basis to spike sharply and exposed widespread short gamma flows, forcing dealers to sell into weakness and accelerating the price decline before stabilization on February 6.