2025-12-16 11:20:42

Many people see large institutions like Blackstone Asset Management and BlackRock selling significant amounts of Bitcoin and Ethereum from spot ETFs, and their first reaction is "These smart money are about to dump." But in fact, this is a common misconception.

The redemption mechanism of spot ETFs determines all of this. When holders want to redeem shares, the fund must sell the corresponding spot assets — this is a passive process, not an active bearish signal. The real driving force comes from investors. Once the market starts to decline or volatility increases, panic can easily trigger a large-scale redemption wave. To cope with liquidity pressures and risk management requirements, the fund must sell even if the price hasn't fallen that much yet.

So, when you see ETF sell-off data surge, don't panic. It often simply reflects market sentiment fluctuations, not a signal that institutions are shorting.

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CompoundPersonality

· 2025-12-19 11:02

Another wave of "big institutions dumping"... Please, everyone, understand the redemption mechanism clearly. This is just passive selling. Why panic?

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GateUser-a180694b

· 2025-12-16 11:48

Haha, yes, yes, yes. I was also fooled by this before and thought Blackstone was going to dump the market, but it turned out to be just the redemption mechanism acting up. Seeing large sell-offs makes me nervous, but actually they are also forced to do so. When investors panic, they have to follow suit. This logic is quite clear, but at the end of the day, it still depends on inflows and outflows. Looking at the data alone can easily scare oneself.

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ExpectationFarmer

· 2025-12-16 11:47

Oh, now I understand. It turns out the redemption mechanism is shifting blame, not BlackRock causing trouble.

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GasSavingMaster

· 2025-12-16 11:45

Here comes the ETF crash talk again; it's really time to dispel this misconception. Wait, is BlackRock really bearish? Not necessarily. Once the subscription and redemption mechanism is in place, you'll understand—this is passive. When panic selling starts, everything must be sold. More data doesn't mean institutions are dumping; don't overthink it. The redemption wave is here; funds can only admit defeat and sell. This logic is explained thoroughly; finally, someone has made it clear.

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ForkItAllDay

· 2025-12-16 11:44

Blackstone and BlackRock selling coins is not market manipulation; they are just forced to do so. Got it. Next time you see a large sell-off, stay calm. It might just be retail investors panicking and redeeming in a frenzy.

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AirdropHunterXM

· 2025-12-16 11:29

Oh my god, finally someone clarified it—not all sell-offs are the work of malicious hands. --- ETF redemptions are just passive sell-offs. No wonder it's the institutions; it's retail investors in panic. --- Now I understand. Large sell volumes don't necessarily signal bad news; it might just be the market screaming. --- Alright, from now on, no need to speculate about conspiracy theories when seeing large sell-offs. The redemption mechanism is right there. --- Damn, I was really fooled before, thinking BlackRock was behind the black hand, but it turns out investors are just fleeing. --- So here's the question: how to distinguish genuine institutional shorting from passive selling? Is just looking at the data enough? --- So, panic is the real killer; institutions are also forced into it. --- This logic makes sense, but in reality, who really cares about these details? When it drops, it drops.

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