BlackRock Cuts IBIT Bitcoin Swap Minimum to $1M
BlackRock’s change widens in-kind Bitcoin swaps for wealthy holders and institutions, with IBIT having processed more than $5 billion, Robbie Mitchnick said.
- BlackRock reduced the minimum value required for eligible Bitcoin holders to convert assets into shares of its iShares Bitcoin Trust ETF to $1 million in July 2026, a 96% reduction from the previous $25 million threshold.
- According to an August 25 Bloomberg report, these transactions use an "in-kind creation" process where Bitcoin holders transfer their assets directly into the fund structure and receive IBIT shares representing comparable exposure.
- ETF issuer Bitwise also lowered its threshold from $100 million to $3 million, while IBIT has processed more than $5 billion of these swaps, up from $3 billion in October, according to Robbie Mitchnick, BlackRock's head of digital assets.
- "People see things happen in the outside world... that motivate them to make this switch for all or some of their holdings," Mitchnick told Bloomberg, citing crypto kidnappings, hacks, and custody failures as adoption drivers.
- While some suggest conversions avoid capital gains taxes, analysts warn this is not a universal rule; tax outcomes depend on individual jurisdiction and structure, requiring investors to seek personalized advice before completing transactions.
12 Articles
12 Articles
Blackrock Processes $5 Billion in Direct Bitcoin-to-ETF Conversions
Large crypto holders are increasingly exchanging bitcoin directly for exchange-traded fund (ETF) shares instead of selling into cash first. Falling minimums at Blackrock and Bitwise, along with growing use at Grayscale and 21shares, are making the process more accessible and extending the model to ether and solana. Blackrock Expands In-Kind Bitcoin Swaps as ETF Access […]
Key news points: BlackRock reduced the minimum amount to turn Bitcoin into shares of its ETF IBIT from $25 million to $1 million since July. BlackRockya’s IBIT fund processed more than $5 billion in in-kind conversions, compared to the $3 billion reported last October. Managers like Bitwise, Morgan Stanley, Grayscale and VanEck also operate with similar conversions. BlackRock reduced in July the minimum size required for their investors to conve…
BlackRock scores $5 billion of tax-deferred Bitcoin to ETF swaps
As iShares Bitcoin Trust (IBIT), the largest Bitcoin (BTC) spot exchange-traded fund (ETF) backed by BlackRock Inc. (NYSE: BLK), attracted its highest year-to-date (YTD) weekly cash inflow of $1.33 billion last week; it has since facilitated $5 billion of tax-deferred Bitcoin-to-ETF swaps. BlackRock’s IBIT has attracted more investors through in-kind creations and redemptions since the United States Securities and Exchange Commission (SEC) appro…
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