BlackRock reduced the minimum in-kind conversion for its iShares Bitcoin Trust (IBIT) from $25 million to $1 million. This represents a 96% reduction in the entry threshold. Robbie Mitchnick, BlackRock’s Head of Digital Assets, confirmed the policy change.
Authorized participants may now exchange physical bitcoin for IBIT shares at the lower limit. This in-kind mechanism remains distinct from standard cash-based creations and redemptions.
The adjustment enables mid-sized institutions, family offices, and high-net-worth individuals to swap appreciated bitcoin for ETF shares without triggering taxable events. This decision is expected to enhance overall fund liquidity.
IBIT recently captured $479 million in new inflows over a three-day period.