BlackRock scores $5 billion of tax

As iShares Bitcoin Trust (IBIT), the largest Bitcoin (BTC) spot exchange-traded fund (ETF) backed by BlackRock Inc. (NYSE: BLK), attracted its highest year-to-date (YTD) weekly cash inflow of $1.33 billion last week; it has since facilitated $5 billion of tax-deferred Bitcoin-to-ETF swaps.

BlackRock’s IBIT has attracted more investors through in-kind creations and redemptions since the United States Securities and Exchange Commission (SEC) approved it on July 29, 2025. Last month, BlackRock cut the minimum size for in-kind transactions from $25 million to $1 million.

As such, IBIT has recorded $5 billion in in-kind conversions as of August 26, up from $3 billion in October 2025, according to a report from Bloomberg. The rising demand for such transactions has been catalyzed by external factors, including security concerns, as per Robbie Mitchnick, head of digital assets at BlackRock.

“It’s going to keep growing because we keep expanding the access. People see things happen in the outside world – whether it’s kidnappings, ransom, custody failures – that motivate them to make this switch for all or some of their holdings,” Mitchnick stated.

As BlackRock’s IBIT hit a milestone of $5 billion in in-kind transactions, Bitwise Bitcoin ETF (BITB) has also significantly reduced its minimum deal size. Specifically, the first time Bitwise handled such an in-kind transaction, the deal had to be worth at least $100 million, later dropping its threshold to $50 million, but is now at $3 million.

“The whole process is still bespoke, from introducing a client to a market maker to working with the adviser, but it’s becoming more standardized,” Matt Hougan, chief investment officer of Bitwise, said.

Hougan noted that this move has played a crucial role in helping Bitcoin become an institutionalized asset.

Bitcoin price performance 

As U.S. spot Bitcoin ETFs continue to streamline its mainstream accessibility, BTC price has gained bullish sentiment. Following its 22% pump over the last 7 days, BTC price has climbed 19.29% during the past six months, trading at $78,600 at press time.

Over the past 24 hours, Bitcoin’s trading volume capitulated by 46.32%, hovering at 33.71 billion at the time of reporting.

Source: finbold.com