Did IBIT trigger a large-scale liquidation of Bitcoin? Wrong!! Many friends have forwarded Parker's article to me, asking if the liquidation of IBIT caused the series of BTC price stampedes. Let me explain briefly that Parker's liquidation is actually the liquidation of IBIT, a spot ETF, not Bitcoin. Although IBIT is a spot ETF for BTC, it does not necessarily mean BTC, and the liquidation of IBIT did not trigger the liquidation of BTC. ETFs are actually two-tier markets, with the primary market mainly consisting of buying and redeeming Bitcoin, which is almost entirely provided by APs (market makers) to provide liquidity. Essentially, this is the same as using USD to generate USDC, and APs rarely circulate BTC through exchanges. Therefore, the biggest use of buying cash ETFs is to lock in the liquidity of Bitcoin. During the large-scale liquidation on Thursday, BlackRock's investors had less than 3000 BTC redeemed, and the total BTC redeemed by spot ETF institutions in the United States was less than 6000 (according to all official website data), which means that ETF institutions sold a maximum of 6000 Bitcoin to the market. And not all of these 6000 may have been transferred to the exchange. The liquidation of IBIT mentioned by Parker actually occurred in the secondary market, with a total transaction volume of approximately $10.7 billion, which is the largest transaction volume in the history of IBIT and has indeed triggered some institutional liquidation. However, it should be noted that this part of the liquidation is only for IBIT, not BTC, and at least it has not been transmitted to the primary market of IBIT. So the significant drop in Bitcoin on Thursday only triggered the liquidation of IBIT, but did not result in the liquidation of BTC caused by IBIT. The secondary market trading target of ETF is essentially ETF, and BTC is only the price anchor of ETF. The most influential factor in the market is the liquidation caused by the sale of BTC in the primary market, not IBIT. In fact, although the price of BTC fell by more than 14% on Thursday, the net outflow of BTC from the ETF only accounted for 0.46%. On that day, the BTC spot ETF held a total of 1273280 BTC, with a total outflow of 5952 BTC. @bitget VIP， Lower rates and more generous benefits