BlackRock Lowers Minimum Bitcoin ETF Swap Threshold by 96%
BlackRock has significantly reduced the minimum threshold required to convert Bitcoin into its iShares Bitcoin Trust (IBIT) via in-kind transactions, cutting it from $25 million to just $1 million—a reduction of 96%. This change makes it easier for large holders and institutions to transfer their Bitcoin holdings directly into IBIT without first selling them for cash. The move follows a surge in demand for spot Bitcoin ETFs since the U.S. Securities and Exchange Commission (SEC) approved such products using in-kind creation methods. Despite this infrastructure improvement, BlackRock's decision does not necessarily signal that Bitcoin is undervalued or an attractive buy at current levels. While IBIT has processed over $5 billion in conversions so far, much of the activity reflects existing holdings being restructured rather than new demand for Bitcoin itself. The price of Bitcoin recently traded around $78,000–$80,000—still 38% below its October 2025 peak—but remains highly volatile.
Topics: Bitcoin BlackRock ETFs in-kind conversion