Bitcoin Decline Explained: Dealer Hedging Transactions with IBIT Structured Products
ByAinvest
Saturday, Feb 7, 2026 6:22 am ET1min read
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BitMEX co-founder Arthur Hayes suggests that Bitcoin's decline may be due to "dealer hedging" transactions involving structured products linked to the iShares Bitcoin Trust (IBIT) issued by banks. Hayes believes that hedging activities, particularly those involving institutional products, may trigger sudden and sharp price movements in the market. He plans to compile a comprehensive list of all structured notes issued by banks to better understand the mechanisms behind rapid price increases and decreases.
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