BlackRock: Security Fears Are Driving Bitcoin Whales Into IBIT
By Micah Zimmerman
AI summary of the source article
Large bitcoin holders are converting self-custodied coins into BlackRock's iShares Bitcoin Trust shares via in-kind swaps at a record pace. Demand is primarily driven by security concerns, including physical attacks and hacks.
Why it matters
The shift cuts against bitcoin's founding pitch of holding money without a bank, as holders who convert give up private keys for a brokerage claim, trading self-custody risks for reliance on BlackRock, custodians, and market makers.
Key facts
- BlackRock facilitates in-kind conversions through Galaxy Digital, Talos, and Virtu, with minimum sizes dropping from $30 million to between $1 million and $2 million.
- The SEC voted on July 29, 2025, to allow spot bitcoin and ether funds to create and redeem shares in kind instead of cash only.
- As of November 6, IBIT held 795,921 BTC, valued at approximately $60.4 billion.
Source excerpt · Bitcoin Magazine
Bitcoin Magazine BlackRock: Security Fears Are Driving Bitcoin Whales Into IBIT BlackRock's Robbie Mitchnick told Barron's demand to swap directly held bitcoin for IBIT shares is at its highest yet, with "security and peace of mind" the top reason as kidnappings and hacks rise. This post BlackRock: Security Fears Are Driving Bitcoin Whales Into IBIT first appeared on Bitcoin Magazine and is writte…