Bitcoin Whales Have Moved $5B into BlackRock ETFs in Tax-Deferred Swaps

BlackRock hits $5 billion in tax-deferred Bitcoin-to-ETF swaps, indicating whales have moved significant BTC holdings to IBIT over the past few months. The Wall Street giant recently lowered the minimum limit for in-kind conversions to $1 million.

BlackRock Hits $5 Billion in Bitcoin-to-ETF swaps

BlackRock’s spot Bitcoin ETF (IBIT) has processed more than $5 billion in conversions from direct Bitcoin holdings to ETF shares, according to a Bloomberg ETF analyst Eric Balchunas.

This marks a sharp increase from the $3 billion recorded in October last year. BlackRock cut the minimum for private in-kind creations on its Bitcoin ETF from $25 million to $1 million in July this year, allowing more investors to do tax-deferred swaps.

Whales swap large crypto holdings for ETF shares, allowing them to retain exposure to Bitcoin while moving their wealth from private wallets and crypto platforms into mainstream finance. BlackRock aims to generate $500 million in annual digital asset revenue by 2030.

“It’s going to keep growing because we keep expanding the access,” said Robbie Mitchnick, head of digital assets at BlackRock. “People see things happen in the outside world – whether it’s kidnappings, ransom, custody failures – that motivate them to make this switch for all or some of their holdings.”