Wall Street ETFs Embracing Direct Crypto Conversions

Wall Street is making it easier for crypto investors to transition from self-custody into exchange-traded funds (ETFs) without first selling their digital assets.

Blackrock has processed over $5 billion in direct Bitcoin-to-ETF conversions since the service became available, according to its head of digital assets, Robbie Mitchnick.

The company reduced the minimum size for such conversions from $25 million to $1 million in July, and Mitchnick expects this trend to continue as access expands.

Other issuers, including Bitwise and 21Shares, are also seeing steady uptake of in-kind transactions, with completed deals averaging around $5 million over the past three months at 21Shares.

The model is expanding beyond Bitcoin, with Grayscale using in-kind transactions for ether products and Bitwise supporting conversions for both ether and solana.