BlackRock Reports Record Pace of Bitcoin Holders Swapping Coins for IBIT Shares

BlackRock says more bitcoin holders than ever want to swap their coins for shares in its iShares Bitcoin Trust (IBIT), according to Barron’s as relayed by Crypto Insiders.

In these transfers, a large holder delivers existing bitcoin to the fund and receives new fund shares in return. The coins are not sold for cash first. This differs from ordinary ETF purchases, which are paid for in cash on an exchange. BlackRock then has the coins held by professional custodians, so the investor no longer has to secure a wallet and private keys.

BlackRock executive Robbie Mitchnick told Barron’s that security and peace of mind are the main reasons. Self-custody leaves the owner responsible for theft, lost access or physical threats, while the fund moves that responsibility to professional providers.

Barron’s reports that BlackRock has seen about $3.6 billion of such conversions. The true amount may be higher, because not every switch is processed directly by BlackRock. Reports in August already put conversions at more than $5 billion, although it is unclear whether the two figures use the same definition.

The “record” claim therefore refers to the current pace of requests, not to a new record total. The trend shows how much bitcoin is moving from individual wallets into regulated fund structures.

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Sources:

• Crypto Insiders: Grote Bitcoinbezitters stappen in recordtempo over naar BlackRock-fonds