BlackRock has moved more than $5 billion worth of Bitcoin from private wallets into its spot Bitcoin ETF, IBIT, after cutting the minimum threshold for in-kind conversions from $25 million to $1 million in July, according to a Techub News report citing CryptoPotato. Robbie Mitchnick, BlackRock’s head of digital assets, said the shift has been driven by security concerns, including kidnapping risk and custody failure, as well as tax advantages tied to these transfers. Other issuers are making similar adjustments. Bitwise reduced its own in-kind conversion minimum from an initial $100 million to $3 million. Grayscale and VanEck are now processing in-kind conversions for Ethereum, while Bitwise supports both Ethereum and Solana. The report also said Grayscale’s in-kind conversion share for Bitcoin and Ethereum rose from 28% and 57% in March to 62% and 63%, respectively. Even so, these transactions still require authorized participants or market makers to custody the crypto, which adds cost. Issuers expect minimum thresholds to keep falling as more intermediaries build out those capabilities. Meanwhile, spot Bitcoin ETFs have recorded more than $2.5 billion in inflows since Aug. 17, marking the largest monthly inflow since October 2025.
BlackRock has moved more than $5 billion worth of Bitcoin from private wallets into its spot Bitcoin exchange-traded fund, the iShares Bitcoin Trust ETF (IBIT), after lowering the minimum threshold for in-kind conversions from $25 million to $1 million in July, according to Techub News, which cited CryptoPotato.
Robbie Mitchnick, BlackRock’s head of digital assets, said security concerns have been a key driver behind the shift. He pointed to risks such as kidnapping and custody failure, while also noting tax advantages tied to in-kind conversions.
Other issuers are also lowering thresholds
Bitwise has cut its in-kind conversion minimum as well, bringing it down from an initial $100 million to $3 million.
Grayscale and VanEck are now processing in-kind conversions for Ethereum. Bitwise, for its part, supports both Ethereum and Solana.
The report said Grayscale’s in-kind conversion share for Bitcoin and Ethereum rose from 28% and 57% in March to 62% and 63%, respectively.
Intermediary custody still adds cost
The report noted that these conversions still require authorized participants or market makers to custody the crypto assets, which increases costs. Even so, issuers expect minimum thresholds to continue falling as more intermediaries build the necessary capabilities.
At the same time, spot Bitcoin ETFs have seen more than $2.5 billion in inflows since Aug. 17, the largest monthly inflow since October 2025.
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