$3B in Bitcoin quietly flows into BlackRock’s ETF via in-kind conversions

Bitcoin whales are quietly handing over their coins straight into BlackRock’s ETF machine, not to exchanges, and not to OTC ￰0￱ to Bloomberg , over $3 billion worth of Bitcoin has already been converted into ETF shares through in-kind transactions, allowing whales to shift their holdings from crypto wallets into brokerage accounts, without triggering a sale or tax ￰1￱ method, only approved for Bitcoin ETFs starting July, lets investors swap coins for ETF shares in a way that keeps their stake ￰2￱ on the books, what was once seen as volatile and off-grid becomes a clean line item, fully recognized by traditional ￰3￱ that opens up everything: borrowing, estate planning, and even better treatment by private ￰4￱ clients bring Bitcoin into the TradFi system Robbie Mitchnick, head of digital assets at BlackRock, said the firm has already helped clients convert over $3 billion of their Bitcoin using these in-kind ￰5￱ noted that some investors are only moving 20% of their holdings into ETF form, but others are “going 100/zero,” putting all of it into the regulated wrapper.

“Consolidate everything in this way, it’s the easiest way for me to hold this going forward,” is how Mitchnick described the full ￰6￱ also said the firm’s been getting a wide range of inquiries from Bitcoin holders looking to bring their assets into the wealth-management world. It’s no longer just the tech-savvy ￰7￱ of these people already have private-bank relationships, and they want everything under one roof. “There’s convenience in being able to hold their exposure within their existing financial adviser or private-bank relationship,” Mitchnick ￰8￱ in the industry are seeing the same ￰9￱ Asset Management says it’s now receiving daily inquiries about these ETF ￰10￱ Fusaro, Bitwise’s president, explained how they completed their first in-kind deal with the BITB ETF back in ￰11￱ pointed to one investor with $1 million on a wealth-management platform and $5 million in Bitcoin kept separately.

“Your wealth management platform treats you like you’re a $1 million client,” Fusaro said. “If you bring your $5 million worth of Bitcoin into a Bitcoin ETF, and you now hold that on your wealth management platform, you qualify for a much higher level of service.” Galaxy, another major player, confirmed it has also handled several ￰12￱ Harvey, the company’s head of franchise trading, said they’ve processed a handful so far and expect more to ￰13￱ Street prepares for wider Bitcoin integration For now, banks aren’t allowed to handle the full in-kind ￰14￱ non-bank broker-dealers ￰15￱ BlackRock confirmed that banks are already helping out in parts of the process, especially when creating new ETF ￰16￱ Mitchnick made it clear that more regulatory clarity would bring in even bigger ￰17￱ means more banks, more volume, and more whales moving their Bitcoin into regulated ￰18￱ Gray, CEO of Alpha Architect, which designs ETFs with tax-focused strategies, said : “Life is just easier in TradFi land — we’ve spent a century perfecting integration, access, and ￰19￱ are finally realizing that.” Then Wes added the part no one in crypto really wants to hear out loud: “The great irony, of course, is that Bitcoin was born to escape traditional finance — and now its biggest holders are trying to get back in.” Join Bybit now and claim a $50 bonus in minutes