BlackRock Cuts Bitcoin ETF Conversion Hurdle by 96%
BlackRock has reduced the minimum in-kind conversion threshold for its Bitcoin (BTC) exchange-traded fund (ETF) from $25 million to $1 million. This change allows investors with at least $1 million worth of BTC to convert their holdings into shares of BlackRock's iShares Bitcoin Trust (IBIT).
The lower threshold was announced by Robert Mitchnick, Head of Digital Assets at BlackRock, in an interview with Bloomberg analysts Eric Balchunas and Isabelle Lee. The process remains intermediated, meaning BlackRock does not directly facilitate transactions with individual investors.
Mitchnick noted that while in-kind creations and redemptions remain a minority of activity within the Bitcoin ETF market, they have grown since regulators permitted the feature, prompting BlackRock to lower the minimum threshold.
The reduction in the minimum conversion threshold has been made possible by the growth of in-kind activity following regulatory approval. Mitchnick stated that this growth has led to BlackRock working on lowering the minimum threshold.