BlackRock Cuts Minimum for Bitcoin ETF Conversion to Just $1M

BlackRock has made significant changes to its Bitcoin ETF conversion process, reducing the minimum required to swap coins for shares from $25 million to just $1 million. This drastic cut represents a 96% reduction and opens up access to a broader range of institutional investors.

The new threshold applies to BlackRock's IBIT fund, which has seen rapid growth in in-kind conversions, reaching over $5 billion since October. The fund charges an annual sponsor fee of 0.25%, and its net assets stand at around $60.65 billion as of August 25.

BlackRock's head of digital assets, Robbie Mitchnick, highlighted the growing security concerns surrounding Bitcoin self-custody, citing hacks and kidnappings that are driving some investors to seek ETF custody instead. The in-kind creation process allows eligible holders to transfer their Bitcoin directly into the ETF structure without selling first.