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BlackRock cuts IBIT bitcoin swap minimum to $1 million

BlackRock says IBIT processed more than $5 billion in in-kind creations, up from $3 billion in October.

Reported · Written up by our desk · Bitcoin

CoinDesk reports BlackRock has lowered the minimum amount of bitcoin required for investors to swap directly into its Nasdaq-listed spot BTC ETF, IBIT, using in-kind creation instead of selling BTC first. The minimum value for a direct swap slipped to $1 million in July, down from $25 million previously, according to the report citing Bloomberg.

The in-kind mechanism allows investors to hand over their BTC to the fund and receive ETF shares back, which can help avoid triggering capital gains taxes that may come from selling holdings. The shift is described as accelerating amid crypto crime, including kidnappings, hacks, and custody failures.

CoinDesk also notes that ETF issuer Bitwise has cut its threshold to $3 million from $100 million, and that IBIT alone processed more than $5 billion of these swaps, up from $3 billion in October, citing BlackRock digital assets head Robbie Mitchnick.

The report says the approach is not limited to bitcoin, with issuers including Grayscale and VanEck now offering similar in-kind swaps for ether.

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