BlackRock Lowers Bitcoin-to-ETF Conversion Minimum

BlackRock has made it easier for wealthy investors and institutions to convert their Bitcoin into shares of its spot Bitcoin ETF, IBIT. The minimum Bitcoin value required for direct conversion has been reduced from $25 million to $1 million, a 96% cut.

This change makes the service more accessible to those holding large amounts of Bitcoin directly. IBIT has processed over $5 billion in conversions using an in-kind creation process that avoids selling Bitcoin first.

Security concerns like hacks and kidnappings are pushing some holders away from self-custody toward ETFs, which remove the burden of private key management but do not allow direct control of the underlying Bitcoin. Bitwise also lowered its conversion minimum from $100 million to $3 million.