BlackRock cuts BTC-to-IBIT in-kind conversion minimum to $1M; Bitwise lowers to $30M
AI Market Summary
BlackRock cut the in-kind creation threshold for converting self-custodied BTC into IBIT shares from $250M to $1M, while Bitwise reduced its threshold from $1B to $30M. Lower minimums broaden access for larger holders and intermediaries, improving ETF creation efficiency and potentially increasing spot ETF inflow capacity. The tax-efficiency of in-kind creation (avoiding an immediate taxable sale) further strengthens institutional adoption incentives.
Impact level
● High
Affected assets
BTC/USDT-1.59%
AI Insight · BTC/USDTAI Insight
▲ Bullish
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BlackRock has sharply reduced the minimum size required for investors to convert self-custodied Bitcoin directly into shares of its spot Bitcoin ETF, IBIT. The firm lowered the threshold from $250 million to $1 million. Bitwise has also eased its requirement, cutting its minimum from $1 billion to $30 million.
The process uses "in-kind creation," allowing investors to deliver BTC in exchange for ETF shares without selling their Bitcoin first. By avoiding an outright sale, investors may be able to defer capital gains taxes that would otherwise be triggered.
Robbie Mitchnick, BlackRock's Head of Digital Assets, said IBIT has handled more than $5 billion of these in-kind conversions so far, up from $3 billion as of October last year.
