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. As of July this year, the minimum conversion size has been reduced from $25 million to $1 million; Bitwise has 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 purchasing the ETF, thereby avoiding immediate capital gains tax triggered by the sale.

Robbie Mitchnick, Head of Digital Assets at BlackRock, said IBIT has processed over $5 billion in such conversions cumulatively, up from $3 billion in October last year. (CoinDesk)