How Does BlackRock’s IBIT ETF Affect Bitcoin Liquidity?

[nihalsari]

Q: With BlackRock’s iShares Bitcoin Trust (IBIT) controlling $88B in assets, does it impact Bitcoin market liquidity?
A: Yes, significantly. Large inflows into IBIT consolidate Bitcoin holdings off-exchange, reducing circulating supply. This can increase spot price volatility in secondary markets during heavy inflows/outflows. Institutional demand also stabilizes volume in OTC markets but may amplify sharp corrections if fund redemptions spike.

#BitcoinLiquidity #BlackRock #CryptoMarkets

[Rimon Khan]

Massive IBIT inflows = bullish long term, but short-term volatility risk just went up

[Nahid Hossen]

Fewer coins on exchanges means every big move hits harder—watch the liquidity crunch