BlackRock Sees $5B in Tax-Deferred Bitcoin Swaps

BlackRock's Bitcoin ETF (IBIT) has seen significant inflows from tax-deferred swaps, totaling over $5 billion in recent months. This marks a sharp increase from October last year when the figure stood at $3 billion.

The Wall Street giant lowered its minimum limit for private in-kind conversions to $1 million in July, allowing more investors to take advantage of these tax-deferred swaps. According to Eric Balchunas, Bloomberg's ETF analyst, this move has made it easier for whales to swap large crypto holdings for ETF shares.

By doing so, these investors can retain exposure to Bitcoin while moving their wealth from private wallets and crypto platforms into mainstream finance. BlackRock aims to generate $500 million in annual digital asset revenue by 2030, with its head of digital assets, Robbie Mitchnick, stating that the trend is 'going to keep growing' as they expand access.