BlackRock Bitcoin ETF Surges Past $5 Billion in Tax-Deferred Swaps

BlackRock's Bitcoin ETF has processed over $5 billion in tax-deferred swaps from direct Bitcoin holdings, according to data from Bloomberg ETF analyst Eric Balchunas. This figure represents a sharp increase from the $3 billion recorded last October.

The lower minimum for private in-kind creations on BlackRock's Bitcoin ETF, which dropped from $25 million to $1 million in July, has contributed to this trend. The head of digital assets at BlackRock, Robbie Mitchnick, stated that the trend will continue to grow as access expands, with outside events such as custody failures pushing investors to make the switch.

Bitwise's Bitcoin ETF and Morgan Stanley's Bitcoin ETF have also seen similar swap trends, according to Bloomberg's analysis. The latter has attracted between 5% and 7% of its total assets under management through these swaps.