ChainCatcher reports that BlackRock has significantly lowered the minimum threshold for investors to directly convert self-custodied BTC into shares of the spot Bitcoin ETF IBIT, reducing the minimum conversion size from $250 million to $1 million; Bitwise has also lowered its corresponding threshold from $1 billion to $30 million. This conversion is completed through “in-kind creation,” allowing investors to directly deliver BTC in exchange for ETF shares without first selling BTC and purchasing the ETF, thereby avoiding immediate capital gains taxes triggered by a sale. Robbie Mitchnick, BlackRock’s Head of Digital Assets, stated that IBIT has processed over $5 billion in such conversions to date, up from $3 billion in October last year.
BlackRock lowers the BTC-to-IBIT conversion threshold to $1M, Bitwise to $3M
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Summary
BlackRock lowered the BTC-to-IBIT conversion threshold from $25 million to $1 million, while Bitwise reduced its minimum from $100 million to $3 million. Investors can now use in-kind creation to exchange BTC for ETF shares without selling, thereby avoiding capital gains tax. BlackRock’s Robbie Mitchnick noted that IBIT has processed over $5 billion in conversions, up from $3 billion in October 2024. As altcoins gaining attention continue to rise in popularity, BTC’s price remains a primary focus for traders and institutional investors.
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