BlackRock Cuts Bitcoin ETF IBIT Minimum to $1M as Self-Custody Shift Grows

Key Insights

• BlackRock cut its Bitcoin ETF IBIT in-kind creation minimum by 96% to $1 million.
• More than $5 billion in Bitcoin has moved from private wallets into IBIT.
• IBIT conversions shift Bitcoin into ETF shares without requiring a direct cash sale.

BlackRock has sharply lowered the entry threshold for large Bitcoin holders seeking to convert existing BTC exposure into shares of its iShares Bitcoin Trust. The minimum transaction size for eligible in-kind IBIT conversions now stands at $1 million, down 96% from $25 million.

The change broadens access to a process that has already handled more than $5 billion of Bitcoin, according to BlackRock Head of Digital Assets Robbie Mitchnick. That total stood above $3 billion when Bloomberg reported on the trend in October 2025.

Bitcoin ETF Conversions Move Existing Holdings Into IBIT

The in-kind process allows qualifying holders to exchange Bitcoin for IBIT shares without first selling their coins for cash. However, only authorized participants can create or redeem shares directly with the trust.

As a result, Bitcoin holders generally need a broker, trading desk or another qualified intermediary to arrange the transaction. Regular investors can still buy and sell IBIT shares on Nasdaq without using the creation process.