Bitcoin ETF Conversions Hit $5 Billion Mark as Blackrock Cuts Minimum Size

Blackrock's iShares Bitcoin Trust (IBIT) has processed over $5 billion in direct bitcoin-to-ETF conversions since the service became available. The minimum size for such conversions was cut from $25 million to $1 million, making it easier for investors to move their digital assets into exchange-traded funds.

The process allows investors to contribute bitcoin directly to a spot ETF and receive shares in return, preserving market exposure while moving custody into the conventional financial system. Blackrock's head of digital assets, Robbie Mitchnick, said 'It's going to keep growing because we keep expanding the access.'

Other issuers are also seeing steady uptake, with Bitwise reducing its minimum conversion size from $100 million to $3 million and 21Shares averaging around $5 million in completed in-kind transactions over the past three months.