BlackRock Lowers IBIT Conversion Threshold by 96%

BlackRock has made it easier for wealthy investors and institutions to convert their Bitcoin holdings into shares of its spot Bitcoin ETF, IBIT. The company reduced the minimum value required for direct conversion from $25 million to $1 million, a 96% cut. This move makes the service more accessible to those holding large amounts of Bitcoin directly.

IBIT has processed over $5 billion in Bitcoin-to-ETF conversions since its introduction, with this number having grown from about $3 billion in October. Bitwise also lowered its conversion threshold, reducing it from $100 million to $3 million.

The change is attributed to security concerns, including hacks and kidnappings, which have led some holders to reconsider self-custody. An ETF removes the personal custody burden, but IBIT shareholders do not control the underlying Bitcoin, and they cannot withdraw or use the coins for payments.