Large bitcoin holders are increasingly converting their holdings into ETF shares to prioritize security and peace of mind. According to Robert Mitchnick, head of digital assets at BlackRock, demand for this transition has reached an all-time high.
Since July 2025, BlackRock has recorded $3.6 billion in bitcoin-to-IBIT conversions, though the actual figure may be higher. The firm utilizes an in-kind mechanism, allowing investors to exchange cryptocurrency for fund shares without selling assets for cash first.
BlackRock has lowered the minimum threshold for these operations from approximately $30 million to between $1 million and $2 million. These transactions are facilitated by authorized participants who manage the creation and redemption of fund shares.
Other asset managers are also expanding access to in-kind mechanisms. On October 21, 2025, Grayscale introduced this feature for ten of its products. Minimums vary based on market value, ranging from $80,300 for a Solana fund to $364,800 for a Bitcoin Mini Trust.
Grayscale notes that these conversions may trigger tax obligations depending on the deal structure. However, the firm highlights benefits for capital management, such as the ability to hold shares in brokerage or retirement accounts and use them for hedging or collateral.
