Wall Street Gets Easier Access to Self-Custody Bitcoin

Two major players in the institutional investment space have made significant changes to their minimum thresholds for converting privately held Bitcoin into shares of their respective exchange-traded funds (ETFs). BlackRock, one of the largest asset managers globally, has reduced its minimum from $25 million to $1 million, while Bitwise has lowered its floor from $100 million to $3 million. These changes are expected to make it easier for a wider range of institutional investors to transfer their Bitcoin holdings into the funds.

The move is seen as a significant step towards making self-custody more accessible to institutional investors, who can now choose between various options for converting their Bitcoin into shares of ETFs. The process involves transferring Bitcoin through an authorized participant, which issues ETF shares at settlement, and crediting those shares to the holder's account.

According to BlackRock, its iShares Bitcoin Trust ETF has processed over $5 billion in transactions since it lowered its minimum threshold in July. Bitwise has also seen a significant increase in conversions, with its threshold reduction by 97% making it more attractive to institutional investors.