Bitcoin rose about 20% over the past week and broke above $80,000 for the first time since May, according to a Forbes report cited by BlockBeats on Aug. 26.
Robbie Mitchnick, BlackRock’s head of digital assets, said the asset base of the firm’s spot Bitcoin exchange-traded fund, iShares Bitcoin Trust (IBIT), 「will continue to grow」 as BlackRock keeps widening the channels through which investors can access and allocate to Bitcoin.
BlackRock cuts the threshold for in-kind Bitcoin-to-IBIT exchanges
The report said BlackRock lowered the minimum size for investors to exchange Bitcoin directly for IBIT shares from $25 million to $1 million.
The mechanism allows eligible investors to convert Bitcoin they already hold into ETF shares without first selling the coins on the market, which may help them avoid capital gains taxes that could arise from a sale.
IBIT now holds more than 765,000 BTC
Since launch, IBIT has become the fastest-growing ETF across multiple asset milestones. It now holds more than 765,000 BTC on behalf of investors, worth about $60 billion.
Mitchnick said real-world risks including kidnapping, extortion and custody failures are pushing some Bitcoin holders to move all or part of their self-custodied assets into ETFs. The report added that recent attacks involving some Coldcard hardware wallets have added to concerns around self-custody security.
Spot Bitcoin ETF inflows strengthen in the U.S.
Data showed that the 13 U.S. spot Bitcoin ETFs, led by IBIT, recorded their strongest weekly inflows in nearly 10 months.
Researchers at Talos said Bitcoin’s roughly 23% gain this week and the rise in volatility both rank near the top of historical readings. Similar moves have usually coincided with above-average returns over the short to medium term.
The report also said this breakout differs from the move in May, which lacked ETF fund support and later retraced. This time, the rally has been backed by structural buying that was not present before.