How Funds Actually Make Money From Bitcoin📰 I’ve followed financial markets long enough to notice a strange paradox:
spend more than five minutes scrolling Crypto TikTok (YouTube or X isn’t much different), and you’d think the entire crypto market is run by a few whale clicks and a handful of flashy headlines.
You’re constantly told that:
📉 Someone is “buying the dip”
📈 Someone else is “selling the top”
🐋 And a major institution is “deciding the fate of the market”
It sounds reasonable.
But in reality… it’s far more complex than that.
📣 I’ve watched hundreds of videos like these. The script is always the same.
Glossy thumbnails, rushed voices, and absolute statements:
“BlackRock is buying — PRICE IS GOING UP!”
“Whales are selling — THE MARKET IS ABOUT TO CRASH!”
“Institutional money is here!!!”
🎭 But beneath the drama, what’s really there?
No nuance. No structure. And almost no understanding of how institutions actually make money.
🔍 Here’s the truth I’ve learned after years of observing the markets:
Whether BlackRock buys or sells Bitcoin has very little to do with you.
Large funds don’t trade on emotion, nor do they survive by predicting direction like retail traders do.
They don’t need Bitcoin to go up.
They don’t need Bitcoin to go down.
🎯 What they need is volatility — calculated, measured, and modeled.
🧠 This is the part most TikTok content completely ignores.
A fund can buy Bitcoin and at the same time:
🛡️ Hedge 100% of its risk
⚖️ Stay delta-neutral
📊 Maintain a neutral market view
🔒 Be protected against both upside and downside moves
👉 For them, buying BTC is not a gamble.
It’s simply the first layer of a multi-leg trading structure.
What matters isn’t how much they buy,
but what comes next — the steps most retail traders have never even heard of.
📉📈 I often ask myself:
Why do so many “TikTok analysts” talk about institutions every day, yet never mention delta, gamma, hedging, or basis?
The answer is simple:
👉 Because they don’t understand it.
If someone:
screams “bullish” and “bearish” in every video
believes institutions are “pumping prices”
but can’t explain delta-neutral hedging
then their opinion on what BlackRock is “doing” has no analytical value.
📊 To really understand this, let’s look at how a fund actually makes money.
Assume Bitcoin is trading at $100,000.
The fund doesn’t care whether price goes up or down.
They deploy a neutral options structure, betting on volatility , not direction.
When price rises:
they sell part of the position to rebalance risk
profit comes from selling at higher levels
When price falls:
they buy back at lower prices
profit comes from buying cheaper
🔁 Price up → sell high
🔁 Price down → buy low
👉 Repeat. With discipline. Without emotion.
This is gamma scalping — the quiet, persistent profit engine behind institutional trading.
💰 So where does their real profit come from?
Not from news.
Not from influencers.
Not from ETF headlines.
It comes from:
continuous hedge adjustments
realized volatility exceeding expectations
direction-neutral structures
strict mathematical discipline
⛔ The rare moment they struggle?
When the market… doesn’t move at all.
🧭 And here’s what I want to say to you directly, as a market professional:
You are not BlackRock.
You don’t have their infrastructure.
You don’t have their capital, speed, or risk models.
👉 Trying to predict or mimic their actions won’t make you a better trader — it will only make you more confused.
✍️ My conclusion is very clear:
Watching what large funds do without understanding the structure behind it
is the fastest path to losses.
BlackRock doesn’t trade narratives.
They don’t trade emotions.
And they certainly don’t trade TikTok stories.
🎯 They trade structure.
And you?
Stop watching what they do.
Start understanding what you should do.
That’s the difference between surviva l and being washed out by the market.
PS: BlackRock and TikTok are used purely as illustrative examples.
