BlackRock helps move more Bitcoin wealth into Wall Street

In-kind ETF conversions are making it easier for large holders to exchange Bitcoin for fund shares without first selling for cash.

Large Bitcoin holders are increasingly moving their wealth into exchange-traded funds as Wall Street makes in-kind conversions cheaper and easier, Bloomberg reported.

The process lets investors contribute Bitcoin to a fund holding the same asset and receive ETF shares in return. BlackRock reduced the minimum transaction size to $1 million in July from $25 million when the service first became available.

BlackRock’s IBIT, the largest US spot Bitcoin ETF, has facilitated more than $5 billion in these conversions, according to the firm’s head of digital assets Robbie Mitchnick. The process can take more than a week and is attracting US and international clients.

The mechanism can help investors avoid selling the asset for cash, which may defer an immediate capital-gains tax depending on their circumstances. It is also spreading to Ether and Solana products as the infrastructure around digital-asset funds becomes more standardized.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.

Large Bitcoin holders are increasingly moving their wealth into exchange-traded funds as Wall Street makes in-kind conversions cheaper and easier, Bloomberg reported.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.