Arthur Hayes: Structured notes tied to BlackRock’s IBIT force dealer delta-hedging that amplifies Bitcoin sell-offs

first published 2026-02-08T14:13:07Z

BitMEX co-founder Arthur Hayes warned that bank-issued structured notes linked to BlackRock’s iShares Bitcoin Trust (IBIT) require dealers to delta-hedge. When trigger levels are hit these dealers sell Bitcoin, creating a feedback loop that amplifies downward pressure and can accelerate price declines; Hayes is compiling a list of issued notes and trigger points. His comments follow Bitcoin’s worst single-day drop since the FTX collapse and come amid other suggested causes such as macro headwinds or a distressed non-crypto entity.

AI Analysis

Hayes says structured notes tied to IBIT force dealers to adjust positions (delta-hedging) and sell as prices fall, creating a feedback loop that amplifies downward pressure; this mechanism is presented as a direct driver of recent sharp Bitcoin declines and Hayes is identifying trigger points — facts that make the story relevant for short-term market action.

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