According to BlackRock, demand from large investors who custody their own Bitcoin to switch to the company’s spot Bitcoin ETF over security concerns has reached a record high, with reported conversions totaling approximately $3.6 billion.
According to Wu Blockchain, citing Barron’s, Robbie Mitchnick, BlackRock’s head of digital assets, said interest among large Bitcoin holders in converting their BTC into IBIT shares had reached a record high. Mitchnick cited security concerns as the main reason for this preference.
Barron’s reported that conversions made this way are worth approximately $3.6 billion, and that the actual total could be higher.
How can investors move into an ETF without selling Bitcoin?
In an in-kind conversion, an investor can receive IBIT shares in exchange for their Bitcoin without first selling it on the market. This allows them to maintain their exposure to the price of Bitcoin while holding their assets through the fund rather than in their own wallet. The reported $3.6 billion represents the value of existing Bitcoin converted this way; it does not measure new money flowing into Bitcoin.
Not investment advice.