Bitcoin Whales Have Moved $5B Into BlackRock’s IBIT: Here’s Why

Security concerns around self-custody are increasingly pushing some Bitcoin holders toward institutional custody. BlackRock has facilitated more than $5 billion in Bitcoin-for-ETF-share swaps from private wallets into its IBIT fund, after cutting the minimum size for such in-kind transactions to $1 million in July. The shift gives investors a way to keep Bitcoin exposure while moving custody into a regulated ETF structure, with security concerns around self-custody adding to the appeal. BlackRock Lowers Barrier for Bitcoin ETF Swaps As noted in a report by Bloomberg, BlackRock’s iShares Bitcoin Trust first opened its in-kind creation process to private wallets with a $25 million minimum, a threshold that fell to $1 million in July. IBIT’s total volume for these conversions has climbed past $5 billion, up from more than $3 billion when Bloomberg first reported on the trend last October. The process can take more than a week to complete, per Robbie Mitchnick, BlackRock’s head of digital assets, and inquiries are now coming in from clients both inside and outside the US. Mitchnick tied the growth to security scares like kidnappings, ransom situations, and custody failures, saying thos...