BlackRock Slashes Bitcoin Conversion Threshold to $1 Million

BlackRock has significantly reduced the minimum amount of Bitcoin required for direct conversion into its spot Bitcoin ETF, IBIT. The new threshold is $1 million, down from $25 million previously.

This change makes it easier for a wider range of investors to trade Bitcoin directly for IBIT shares without going through the open market first. Previously, only those with at least $25 million in Bitcoin could access this direct swap, effectively locking out smaller funds and high-net-worth individuals.

IBIT remains the dominant player in the spot Bitcoin ETF space, with over $60.65 billion in net assets as of August 25. The fund charges a 0.25% annual sponsor fee, which applies uniformly across the fund.