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BlackRock’s iShares Bitcoin Trust ETF has processed more than $5 billion in direct Bitcoin-to-ETF conversions, as some large holders move existing BTC into an exchange-traded structure without first selling it for cash. The total has risen from more than $3 billion when Bloomberg reported on the trend in October 2025, according to BlackRock digital-assets head Robbie Mitchnick.
The transactions use an in-kind creation process, where Bitcoin is delivered through an authorized participant in exchange for newly created IBIT shares. The $5 billion figure therefore represents conversions of existing Bitcoin holdings rather than $5 billion of new cash buying BTC.
BlackRock Cuts Minimum Conversion Size to $1 Million
BlackRock lowered the minimum size for eligible Bitcoin-to-IBIT conversions from $25 million to $1 million in July. The lower threshold makes the process available for smaller transactions than when BlackRock first began offering the service.
Mitchnick said BlackRock continues to receive interest from U.S. and international clients, with concerns about self-custody among the reasons some holders are considering ETF structures. He said:
“It’s going to keep growing because we keep expanding the access.”
SEC Approved In-Kind Crypto ETF Transactions in 2025
The conversions became possible after the U.S. Securities and Exchange Commission approved in-kind creations and redemptions for crypto exchange-traded products on July 29, 2025. Spot Bitcoin and Ether products had previously been limited to cash-based creations and redemptions.
The change allows authorized participants to deliver Bitcoin directly when creating ETF shares instead of requiring the fund structure to convert cash into BTC. SEC officials said at the time that the mechanism could reduce costs and improve efficiency for crypto ETPs.
IBIT Holds More Than $60 Billion in Assets
IBIT had approximately $60.52 billion in net assets as of August 26, according to BlackRock. The fund launched in January 2024 and seeks to track Bitcoin’s price before fees and expenses.
The growing use of in-kind conversions shows that some existing Bitcoin holders are moving their exposure from directly held BTC into an ETF structure. It does not by itself represent additional Bitcoin demand, but it shifts more existing BTC into an investment product operating within traditional financial markets.
