Robert Mitchnick, Head of Digital Assets at BlackRock, which operates in the field of digital assets, stated that during the last volatility period, the majority of BlackRock Bitcoin ETF (IBIT) investors maintained their positions without selling. Blockchain analyzes published in the same week shed light on which addresses the amount of Bitcoin leaving the market was transferred to.
Behavior of IBIT Investors
In his assessment of the IBIT investor profile, Robert Mitchnick, head of BlackRock’s digital asset unit, pointed out that almost all investors have a long-term perspective. Approximately 90 percent of IBIT’s demand base consists of individual investors and financial advisors. According to Mitchnick, these groups are more likely to buy rather than sell when the market declines. It was reported that the remaining 10 percent consisted of hedge funds and investors using short-term strategies.
During the period of sharp price decline, the total extraction rate in IBIT was recorded as only 0.2 percent, with Bitcoin falling from $ 126,000 to $ 66,000. More than 90 percent of investors did not change their positions. This indicates that despite market fluctuations, mass panic selling did not occur.
Bitcoin Exit from Exchanges and Movements on the Chain
Mitchnick’s assessments were also supported by on-chain data. According to the latest data published by crypto analysis company Santiment, Bitcoin supply on exchanges has fallen to the lowest level since November 2017. At that time, Bitcoin was trading at $16,400. In the chart covering the period from 2016 to March 2026, the supply rate on the stock market has been continuously decreasing since the 2020–2021 peak and is now at an eight-year low.
In the evaluation published by Santiment, it was shared that the Bitcoin rate on exchanges, based on monitored wallets, reached its lowest level since November 2017.
Bitcoins withdrawn from exchanges are generally transferred either to individual users’ own wallets or to the cold storage of institutional investors. The investor profile highlighted by Mitchnick continues its long-term movements not only within the ETF but also in general market conditions. In short, the amount of sellable Bitcoin is rapidly decreasing.
Supply Squeeze in Market Dynamics
The decline in supply on exchanges and the almost constant amount of Bitcoin issued from the ETF is in line with the long-term conservative behavior prevailing in the market. Instead of turning to sales in case of sudden price drops, investors either protect their assets or reduce the liquid supply in the market by withdrawing them to new wallets. This creates an environment that may lead to sharper movements in prices in the face of possible new demands.
Especially in periods when risk appetite will increase or economic policies will change, the decline in salable supply in the market may make price fluctuations more pronounced. Recent developments show that the supply squeeze in the market has become evident.
BlackRock’s Staked Ether ETF Move
These statements by Mitchnick came to the fore with the launch of BlackRock’s Ethereum-based staked Ether ETF ETHB. This product shows that institutional interest in return-oriented crypto investment continues in the period after Bitcoin. Staked Ether ETF offers investors access to ETH price movement, as well as returns from staking on the blockchain, in a regulated structure.
The launch of ETHB and investor behavior in IBIT reveal that BlackRock’s stance towards crypto assets has not diminished, but continues to diversify.
