BlackRock Slashes IBIT Minimum Threshold by 96% as Self-Custody Shift Accelerates
BlackRock has reduced the minimum threshold for converting Bitcoin into shares of its iShares Bitcoin Trust (IBIT) by 96%, from $25 million to $1 million. This change allows more large-scale investors to take advantage of the in-kind conversion process, which enables them to exchange their existing Bitcoin holdings for IBIT shares without selling them first.
According to BlackRock's Head of Digital Assets Robbie Mitchnick, over $5 billion in Bitcoin has already been moved into IBIT through this process. The reduced minimum threshold is expected to further accelerate this trend as investors reconsider the risks associated with self-custody and look for alternative structures that offer greater security.
The iShares Bitcoin Trust allows investors to hold exchange-traded shares designed to track the value of Bitcoin, but they do not have direct control over their underlying Bitcoin holdings. Instead, they must rely on intermediaries such as brokerages or trading desks to arrange conversions and redemptions.