BlackRock Makes Whale Moves Into Bitcoin Shares Cheaper, Bloomberg Reports

TL;DR

• BlackRock lowered the minimum amount to convert Bitcoin into shares of its IBIT ETF from $25 million to $1 million starting in July.
• BlackRock’s IBIT fund has already processed more than $5 billion in in-kind conversions, up from the $3 billion reported last October.
• Asset managers such as Bitwise, Morgan Stanley, Grayscale and VanEck also operate with similar conversions.

BlackRock lowered in July the minimum size required for its investors to convert their Bitcoin holdings into shares of its spot ETF IBIT, dropping from $25 million to $1 million. This change accompanied a broader industry trend: Wall Street is building infrastructure to absorb crypto wealth through regulated, more accessible and increasingly standardized mechanisms.

The process is based on so-called in-kind creations, enabled by U.S. regulators last summer. Instead of first selling Bitcoin for dollars, the investor transfers it directly to BlackRock’s fund and receives ETF shares in return. Depending on the holder’s circumstances, this can avoid the immediate generation of a capital gains tax liability. Additionally, the investor gives up private custody, digital keys and exposure to hacks or physical theft.

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