Bloomberg · Bitcoin · Wall Street · Bitcoin ETF · CryptoSlate
It just got 25 times easier to move self-custody Bitcoin directly onto Wall Street, and $5 billion already has
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BlackRock cut the minimum for converting privately held Bitcoin into IBIT shares from $25 million to $1 million, while Bitwise lowered its floor from $100 million to $3 million.
Key facts
- Farside data show that US spot Bitcoin ETFs absorbed $2.57 billion across seven positive sessions from Aug. 17 through Aug. 25, with IBIT taking $1.82 billion, or 71% of the total
- Bitwise made an even steeper cut, taking its minimum from $100 million for its first such transaction to $50 million and now $3 million
- BlackRock cut the minimum for converting privately held Bitcoin into IBIT shares from $25 million to $1 million, while Bitwise lowered its floor from $100 million to $3 million
- A $1 million floor still excludes almost everyone, although it reaches far beyond the population able to commit $25 million or $100 million of Bitcoin to a single transaction
Summary
01 BlackRock cut IBIT’s in-kind Bitcoin conversion minimum from $25 million to $1 million, with more than $5 billion processed. 02 Lower thresholds expand institutional custody access, avoiding some selling, repurchasing, and potential tax friction for wealthy Bitcoin holders. 03 The shift may reduce personal custody burdens while concentrating more Bitcoin within ETF custodians and adding fees and infrastructure dependence. BlackRock cut the minimum transaction size for a qualifying Bitcoin holder to convert coins directly into shares of its iShares Bitcoin Trust ETF from $25 million to $1 million in July, the company told Bloomberg.