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

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

Robbie Mitchnick, Head of Digital Assets at BlackRock, stated that IBIT has processed over $5 billion in such conversions cumulatively, a further increase from the $3 billion recorded in October last year. (CoinDesk)