Bitcoin Whales Getting Back Into TradFi Via ETFs Says BlackRock

Bitcoin whales are moving their wealth from the blockchain onto Wall Street’s balance sheet, reported Bloomberg on ￰0￱ Bitcoin ETFs are providing a novel way for the crypto-rich to get their coins into the traditional financial markets without selling them, it ￰1￱ exchanges are tax-neutral swaps where no cash changes hands and no taxable sales ￰2￱ Bitcoin whales are doing custom creations of IBIT, trading in their physical Bitcoin for shares of the ETF, for a “variety of benefits after discovering TradFi has its perks,” said ETF analyst Eric ￰3￱ Getting Back into TradFi Once Bitcoin is held as an ETF within a brokerage account, it becomes much easier to use as collateral for loans and include in estate ￰4￱ also provides access to higher-tier wealth management services and integration with traditional financial advisers and ￰5￱ moves from BTC into ETFs have been driven by the regulatory approval of “in-kind creations,” which enable the digital asset to be “swapped” for shares in the ETF without generating a taxable ￰6￱ has already facilitated more than $3 billion of these conversions, according to its head of digital assets, Robbie ￰7￱ whales are “waking up to the convenience of being able to hold their exposure within their existing financial adviser or private-bank relationship,” Mitchnick told Bloomberg.

“Life is just easier in TradFi land — we’ve spent a century perfecting integration, access, and ￰8￱ are finally realizing that,” said Wes Gray, founder and CEO of ETF firm Alpha Architect. “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.” Bitcoin ETFs Bounce Back Spot Bitcoin ETFs in the United States reversed a four trading day trend of outflows on Tuesday with an aggregate inflow of $475 ￰9￱ (IBIT) led the pack as usual with an inflow of $209 million following the previous five days when the product bled $440 million as Bitcoin prices tanked and failed to ￰10￱ Invest (ARKB) was the second largest inflow on Tuesday with $163 million, while there were smaller inflows for Fidelity, Bitwise, and ￰11￱ are now 155 crypto exchange-traded product filings tracking 35 different digital assets, which “could easily end up seeing over 200 hit the market in the next 12 months,” observed Balchunas, who described it as a “total land rush.”