BlackRock Slashes Minimum for Bitcoin-to-ETF Swaps
BlackRock has made a significant change to its Bitcoin-to-ETF swaps policy by reducing the minimum amount required from $25 million to $1 million. This move allows more investors to convert their Bitcoin directly into shares of the firm's spot exchange-traded fund, the iShares Bitcoin Trust ETF (IBIT), rather than selling it first.
The lower threshold is part of a growing trend among large issuers, including Bitwise and Morgan Stanley, to make it easier for investors to hold digital assets through regulated wrappers. This shift reflects a preference among big holders to move their holdings into ETF form due to concerns about kidnappings, extortion demands, and custody failures.
According to BlackRock's head of digital assets, Robbie Mitchnick, the program is expected to expand further as awareness of these risks spreads. The trend marks a notable structural shift in how digital assets are held, with Bitcoin entering a custodial framework overseen by regulated financial institutions when it moves from personal wallets and exchanges into ETFs.