BlackRock Lowers BTC-to-IBIT Conversion Threshold to $1M, Bitwise to $3M

Odaily News: BlackRock has significantly lowered the threshold for investors to convert self-custodied BTC directly into shares of its spot Bitcoin ETF IBIT. In July this year, the minimum conversion size was reduced from the previous $25 million to $1 million; Bitwise also lowered its threshold from $100 million to $3 million. The conversion is completed through "in-kind creation," allowing investors to deliver BTC directly in exchange for ETF shares without first selling BTC and then buying the ETF, thereby avoiding immediate capital gains tax triggered by a sale.

Robbie Mitchnick, head of digital assets at BlackRock, said IBIT has cumulatively processed over $5 billion in such conversions, up from $3 billion last October. (CoinDesk)