BlackRock Sees record demand from bitcoin Whales Converting BTC into IBIT
Demand from large bitcoin holders to move self‑custodied BTC into BlackRock's spot bitcoin ETF IBIT hit $3.6 billion, reflecting security concerns.
Key takeaways
- 1$3.6 billion of BTC converted into IBIT shares
- 2Conversions use in‑kind transfers, avoiding market sales
BlackRock's head of digital assets Robbie Mitchnick said on November 10 that demand from large bitcoin holders to convert self‑custodied BTC into shares of the firm's spot bitcoin ETF, IBIT, reached a record $3.6 billion.
The conversions are done through in‑kind transactions, allowing investors to exchange their bitcoin for ETF shares without first selling on the open market. Mitchnick attributed the surge to security concerns, noting that holders prefer the regulated custody of the ETF. He added that the $3.6 billion figure could be an underestimate of total activity. The process avoids market impact and preserves the underlying bitcoin supply.
BlackRock is the world’s largest asset manager and launched IBIT as a spot bitcoin exchange‑traded fund that tracks the price of bitcoin while holding the underlying asset. The product gives investors exposure to bitcoin without managing private keys, a feature that appeals to holders worried about hacks or custodial failures.
The shift suggests that large holders are moving bitcoin into a regulated vehicle, potentially easing on‑chain supply pressure. Traders will watch future conversion volumes and any net inflows into IBIT as a gauge of institutional confidence. Monitoring SEC filings for changes to the ETF’s structure will also be key. If conversions continue to rise, it could signal broader adoption of custodial solutions among crypto‑wealthy investors.
Reported and edited by the YourKhabri desk under our editorial policy. Nothing here is investment advice.