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Bitcoin Whales Shift $3 Billion Into BlackRock’s IBIT Through In‑Kind Conversions

A recent SEC tweak enabled direct Bitcoin‑for‑ETF share swaps that large holders now favor for tax‑efficient execution.

Overview

  • BlackRock’s digital assets chief Robbie Mitchnick told Bloomberg the firm has facilitated more than $3 billion of Bitcoin-to-IBIT conversions through custom ETF creations.
  • The in‑kind, portfolio‑style process lets authorized participants deliver Bitcoin for ETF shares in a manner similar to bond market portfolio trades.
  • BlackRock attributes investor interest to improved liquidity and potential tax advantages when moving coins into a regulated ETF wrapper.
  • The flows coincide with a reported first‑time decline in self‑custodied Bitcoin in 15 years, pointing to shifting custody preferences among early holders.
  • International adoption is building, with Costa Rica’s Banco Nacional preparing a spot Bitcoin ETF, Australia’s ASX listing a VanEck fund, and the UK’s FCA approving WisdomTree crypto ETPs.