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BlackRock cuts bitcoin ETF swap minimum to $1 million: Report

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BTC whales increasingly trade self custody for ETFs. (Unsplash+)

BlackRock has made it a lot cheaper for bitcoin whales to swap self-custody for shares in its Nasdaq-listed spot BTC ETF, IBIT, a shift that’s accelerating due to crypto crime, according to a report by Bloomberg.

Key facts

Summary

BlackRock has lowered the minimum bitcoin required for a direct swap into its IBIT exchange-traded fund. Through in-kind creation, investors can exchange bitcoin for ETF shares without first selling their holdings and potentially incurring capital gains taxes. The minimum value of bitcoin needed to swap directly into IBIT shares slipped to $1 million in July. The swapping works through a process called “in-kind creation,” where investors hand over their BTC to the fund and get ETF shares back.

Read full article at CoinDesk →

#Bloomberg #Bitcoin ETF #Bitcoin