Overview
- BlackRock says it has facilitated more than $3 billion of Bitcoin-to-IBIT conversions via portfolio-style, in-kind creations, according to digital assets head Robbie Mitchnick.
- The mechanism allows authorized participants to deliver BTC for ETF shares rather than cash, a change the SEC described as making crypto ETPs less costly and more efficient.
- Bloomberg reported the swaps are generally tax-neutral because no sale is recorded, preserving exposure while placing assets where they can be borrowed against or included in estate plans.
- Mitchnick said self-custodied Bitcoin has declined for the first time in about 15 years as some early holders opt for regulated custody through ETFs.
- Other providers are seeing activity, with Bitwise reporting daily client inquiries and Galaxy processing transactions, while international access grows with ASX’s VanEck Bitcoin ETF listing, UK approvals for WisdomTree crypto ETPs, and Costa Rica’s Banco Nacional preparing a spot product.