BlackRock Facilitates Record $5B Tax-Deferred Bitcoin Swaps

BlackRock's iShares Bitcoin Trust (IBIT), the largest Bitcoin spot ETF backed by BlackRock Inc., has facilitated $5 billion in tax-deferred Bitcoin-to-ETF swaps. This milestone follows a record weekly cash inflow of $1.33 billion into IBIT, its highest year-to-date. Since the US SEC approved IBIT on July 29, 2025, it has attracted more investors through in-kind creations and redemptions.

As of August 26, IBIT recorded $5 billion in in-kind conversions, up from $3 billion in October 2025, according to a report from Bloomberg. This rising demand is attributed to external factors such as security concerns, as stated by Robbie Mitchnick, head of digital assets at BlackRock.

‘It’s going to keep growing because we keep expanding the access. People see things happen in the outside world, whether it’s kidnappings, ransom, custody failures, that motivate them to make this switch for all or some of their holdings,’ said Mitchnick.