BlackRock Says 90% of Its Bitcoin ETF Holders Did Not Panic: The On-Chain Data Backs That Up

Robert Mitchnick, BlackRock’s Head of Digital Assets, told CNBC on March 12, 2026, that the vast majority of IBIT investors held through the recent drawdown without selling, and the Bitcoin supply data published the same week explains exactly where those coins went.

What Mitchnick Actually Said

Speaking during a CNBC interview that also covered the launch of BlackRock’s new staked Ether ETF, Mitchnick broke down the IBIT investor base in terms that challenge the dominant narrative about institutional capital fleeing during downturns.

Roughly 90% of IBIT’s demand base consists of retail investors and financial advisors. He describes them as some of the most long-term focused participants in the market, characterised by a tendency to buy the dip rather than sell into weakness. The remaining 10% are hedge funds and tactical traders using short-term strategies including basis trades. That minority generates the trading activity. The majority generates the structural floor.

The numbers support his characterisation directly. During the volatility that took Bitcoin from its $126,000 peak to $66,000, IBIT recorded redemptions of only 0.2%. Nine out of ten holders did not move. That retention rate during a 47% drawdown is not consistent with panic. It is consistent with conviction.

Where the Bitcoin Is Going

The behaviour Mitchnick describes inside IBIT is visible in on-chain data outside it. Santiment data published this week shows the percentage of Bitcoin supply held on exchanges has fallen to its lowest level since November 2017, when Bitcoin was trading at $16,400. The Santiment chart covers 2016 through March 2026, and the yellow percentage line has been declining consistently since its 2020 to 2021 peak, now reaching the dashed reference line marking that eight-year low.

Bitcoin leaving exchanges moves to one of two places: self-custody wallets or institutional cold storage. The holders Mitchnick describes are not just staying put inside the ETF structure. The broader market is doing the same thing independently. Coins are being withdrawn from the platforms where they could be sold most easily, at a rate not seen in nearly a decade.

Why the Combination Matters

Exchange supply falling and ETF redemptions staying near zero during a major drawdown are two expressions of the same underlying behaviour. Long-term holders are not selling. They are either holding in place or withdrawing to storage. Both actions reduce the liquid supply available to meet any incoming demand.

When demand picks up, whether from geopolitical relief, a Fed rate signal, or a technical breakout, it meets a market where the immediately available sell-side has been systematically reduced. Less supply responding to the same demand produces sharper price moves. The supply compression happening now sets the conditions for that dynamic.

The Staked Ether ETF Context

Mitchnick’s comments came in the context of BlackRock launching ETHB, its staked Ether ETF. The product marks BlackRock’s expansion beyond Bitcoin into yield-generating crypto exposure, offering investors staking rewards on top of ETH price exposure within a regulated wrapper. The launch itself is a signal that BlackRock’s conviction in the asset class extends beyond Bitcoin and into Ethereum’s staking economy, covered in depth in earlier reporting this week when the Ethereum Foundation announced its own 70,000 ETH staking initiative.

The IBIT retention data and the ETHB launch together describe the same institutional posture. BlackRock is not reducing its crypto exposure during the bear market. It is expanding it

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