BlackRock Drops IBIT Conversion Barrier to $1M Amid Self-Custody Shift
BlackRock, a leading investment management firm, has reduced the minimum in-kind creation threshold for its iShares Bitcoin Trust (IBIT) by 96% to $1 million. This move allows larger Bitcoin holders to more easily convert their existing BTC exposure into shares of IBIT without selling their coins directly for cash.
The change broadens access to a process that has already handled over $5 billion in Bitcoin, with the total exceeding $3 billion when reported on by Bloomberg in October 2025. In-kind creations and redemptions were approved by the Securities and Exchange Commission (SEC) in July 2025 for spot crypto exchange-traded products.
Security concerns may be driving some Bitcoin holders to reconsider self-custody, with reports of kidnappings, ransom demands, hacks, and custody failures influencing decisions about managing assets directly. BlackRock's Head of Digital Assets Robbie Mitchnick noted that such events can lead holders to move their exposure into an ETF structure.