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) approved it on July 29, 2025. Last month, BlackRock cut the minimum size for in-kind transactions from $25 million to $1 million.

As such, IBIT has recorded $5 billion in in-kind conversions as of August 26, up from $3 billion in October 2025, according to a report from Bloomberg. The rising demand for such transactions has been catalyzed by external factors, including security concerns, as per Robbie Mitchnick, head of digital assets at BlackRock.

“It’s going to keep growing because we keep expanding the access. 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,” Mitchnick stated.

BlackRock leads in democratizing access to Bitcoin exposure