Just in: BlackRock expects billions of dollars in cryptocurrency inflows into ETFs due to security concerns. BlackRock has already seen $3.6 billion in in-kind conversions. This mechanism, called “in-kind,” allows large holders to directly exchange their BTC holdings for IBIT shares—without first selling to cash. Regulatory approval was granted last year, and the minimum threshold dropped from $25 million to $1 million in July. With security and peace of mind as the core focus: large holders prefer moving their assets into BlackRock’s ETF rather than keeping them on exchanges or hot wallets. In-kind conversions typically do not trigger capital gains taxes. Major holders are moving their crypto into IBIT for greater confidence. The less secure exchanges become, the more attractive ETFs appear.
kelly /Crypto & RWAShare
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